How Chembio Diagnostics Inc. (CEMI) Works From A Technical Perspective


Chembio Diagnostics Inc. (NASDAQ:CEMI) traded with an addition of $0.01 to close at $0.21 on Friday, an upside of 2.54 percent. An average of 407,763 shares of common stock have been traded in the last five days. There was a gain of $0.0102 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 295,536 shares traded, while the 50-day average volume stands at 317,134.

CEMI stock has decreased by -33.87% in the last month. The company shares reached their 1-month lowest point of $0.1900 on 12/29/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $0.19 and a high of $1.25 in 52 weeks. It has reached a new high 1 time so far this year and lost -82.02% or -$0.9058 in price. In spite of this, the price is down -83.18% from the 52-week high.

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Valuation Metrics

Chembio Diagnostics Inc. (CEMI) stock’s beta is 1.70. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.13, the price-to-book (PB) ratio at 0.37.

Financial Health

The quick ratio of Chembio Diagnostics Inc. for the three months ended March 30 was 1.00, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.01 and a total debt to equity ratio of 1.08 for the quarter ending March 30. Its gross profit as reported stood at $13.32 million compared to revenue of $47.82 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Chembio Diagnostics Inc.’s return on assets was -57.30%.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$6.7 million in the quarter, while revenues of -$6.95 million were grew 4.93%. The analyst consensus anticipated Chembio Diagnostics Inc.’s latest quarter earnings to come in at -$0.21 per share, but it turned out to be -$0.29, a -38.10% surprise. For the quarter, EBITDA amounted to -$5.34 million. Shareholders own equity worth $36.71 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Chembio Diagnostics Inc. (CEMI) price momentum. RSI 9-day as of the close on 29 December was 42.94%, suggesting the stock is Neutral, with historical volatility in this time frame at 103.12%.

As of today, CEMI’s price is $0.2148 +4.55% or $0.0102 from its 5-day moving average. CEMI is currently trading -23.54% lower than its 20-day SMA and -73.98% lower than its 100-day SMA. However, the stock’s current price level is -20.61% below the SMA50 and -66.55% below the SMA200.

The stochastic %K and %D were 12.67% and 8.17%, respectively, and the average true range (ATR) was 0.0326. With the 14-day stochastic at 23.69% and the average true range at 0.0337, the RSI (14) stands at 41.51%. The stock has reached -0.0095 on the 9-day MACD Oscillator while the 14-day reading was at -0.0395.

Analyst Ratings

Colliers Securities downgraded Chembio Diagnostics Inc. (NASDAQ: CEMI) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.

What is CEMI’s price target for the next 12 months?

Analysts predict a range of price targets between $8.00 and $8.00, with a median target of $8.00. Taking a look at these predictions, the average price target given by analysts for Chembio Diagnostics Inc. (CEMI) stock is $8.00.


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