While The9 Limited ADR has underperformed by -2.71%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, NCTY rose by 107.13%, with highs and lows ranging from $20.59 to $4.03, whereas the simple moving average jumped by 71.08% in the last 200 days.
On November 13, 2009, JP Morgan Downgraded The9 Limited ADR (NASDAQ: NCTY) to Neutral. A report published by Oppenheimer on June 18, 2009, Downgraded its rating to ‘Perform’ for NCTY. Roth Capital also reiterated NCTY shares as ‘Hold’, quoting a target price of $11 on the company’s shares in a report dated April 16, 2009. ThinkEquity Reiterated the rating as Buy on January 27, 2009, but set its price target from $16 to $20. Sterne Agee initiated its ‘Hold’ rating for NCTY, as published in its report on January 27, 2009. Brean Murray also rated the stock as ‘Hold’.
Analysis of The9 Limited ADR (NCTY)
Further, the quarter-over-quarter decrease in sales is -8.86%, showing a negative trend in the upcoming months.
One of the most important indicators of The9 Limited ADR’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of 88.12% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.23, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and NCTY is recording 163.58K average volume. On a monthly basis, the volatility of the stock is set at 10.15%, whereas on a weekly basis, it is put at 10.10%, with a gain of 3.85% over the past seven days. Furthermore, long-term investors anticipate a median target price of $10.50, showing decline from the present price of $15.10, which can serve as yet another indication of whether NCTY is worth investing in or should be passed over.
How Do You Analyze The9 Limited ADR Shares?
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 4.23%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 0.19% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
NCTY shares are owned by institutional investors to the tune of 0.19% at present.
