REE Automotive Ltd (REE) presents a great opportunity, but the stock is slightly overvalued

While REE Automotive Ltd has overperformed by 2.87%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, REE fell by -31.61%, with highs and lows ranging from $11.72 to $2.31, whereas the simple moving average fell by -59.40% in the last 200 days.

On April 11, 2025, Alliance Global Partners started tracking REE Automotive Ltd (NASDAQ: REE) recommending Buy. A report published by ROTH MKM on May 17, 2024, Initiated its previous ‘Buy’ rating for REE. Cantor Fitzgerald also Downgraded REE shares as ‘Underweight’, setting a target price of $4 on the company’s shares in a report dated December 01, 2023. Wells Fargo initiated its ‘Underweight’ rating for REE, as published in its report on March 25, 2022. Cantor Fitzgerald’s report from January 14, 2022 suggests a price prediction of $9 for REE shares, giving the stock a ‘Overweight’ rating. Morgan Stanley also rated the stock as ‘Underweight’.

Analysis of REE Automotive Ltd (REE)

Further, the quarter-over-quarter decrease in sales is -98.83%, showing a negative trend in the upcoming months.

In order to gain a clear picture of REE Automotive Ltd’s future performance, a variety of well-rounded analysis and research techniques can be applied, with equity being the most critical. Taking into account the quick ratio of the company, currently set at 3.15, 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.

An average volume of 111.79K can be a very valuable indicator of volatility for REE stock. On a monthly basis, the volatility of the stock is set at 14.26%, whereas on a weekly basis, it is put at 10.54%, with a loss of -8.73% over the past seven days. Furthermore, long-term investors anticipate a median target price of $12.38, showing growth from the present price of $2.51, which can serve as yet another indication of whether REE is worth investing in or should be passed over.

How Do You Analyze REE Automotive Ltd Shares?

In addition to the fundamentals, you should also consider how many employees own shares in 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 42.91%. 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 90.15% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.

REE shares are owned by institutional investors to the tune of 90.15% at present.

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