ContextLogic Inc. (WISH): What Technical Indicators Show

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ContextLogic Inc. (NASDAQ:WISH) saw an upside of 7.61% to close Monday at $0.67 after adding $0.05 on the day. The 5-day average trading volume is 17,152,500 shares of the company’s common stock. It has gained $0.7221 in the past week and touched a new high 1 time within the past 5 days. An average of 19,600,070 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 20,410,406.

WISH’s 1-month performance is 33.71% or $0.1945 on its low of $0.4353 reached on 12/28/22. The company’s shares have touched a 52-week low of $0.44 and high of $2.93, with the stock’s rally to the 52-week high happening on 01/17/23. YTD, WISH has achieved 37.46% or $0.1827 and has reached a new high 7 times. However, the current price is down -77.12% from the 52-week high price.


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Insider Transactions

WISH stock investors last saw insider trading activity on Jan 03.Jain Tarun Kumar (Chief Product Officer) most recently sold 88,000 shares at $0.49 per share on Jan 03. This transaction cost the insider $43,384. Chief Product Officer, Jain Tarun Kumar, sold 88,000 shares at a price of $0.69 on Dec 02. Then, on Nov 02, Chief Product Officer Jain Tarun Kumar sold 88,000 shares at a price of $0.74 per share. This transaction amounted to $65,375.

Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.59 while the price-to-book (PB) in the most recent quarter is 0.79.

ContextLogic Inc.’s quick ratio for the period ended September 29 was 2.70, with the current ratio over the same period at 2.70. In terms of profitability, the gross margin trailing 12 months is 35.30%. The firm’s gross profit as reported stood at $1.11 billion against revenue of $2.08 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, ContextLogic Inc.’s cash and short-term investments amounted to $250.0 million against total debt of $18.0 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 48.39% to -$124.0 million, while revenue of -$90.0 million was 27.42% off the previous quarter. Analysts expected WISH to announce -$0.2 per share in earnings in its latest quarter, but it posted -$0.18, representing a 10.00% surprise. EBITDA for the quarter stood at more than -$127.0 million. WISH stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 337.0 million, with total debt at $18.0 million. Shareholders hold equity totaling $677.0 million.

Let’s look briefly at ContextLogic Inc. (WISH) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 68.48% to suggest the stock is trending Neutral, with historical volatility in this time period at 70.96%.

The stock’s 5-day moving average is $0.6346, reflecting a +3.12% or $0.0203 change from its current price. WISH is currently trading +29.67% above its 20-day SMA, -46.79% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -1.83% and SMA200 by-71.10%.

Stochastic %K and %D was 66.57% and 64.93% and the average true range (ATR) pointed at 0.0623. The RSI (14) points at 61.66%, while the 14-day stochastic is at 80.12% with the period’s ATR at 0.0607. The stock’s 9-day MACD Oscillator is pointing at 0.0075 and 0.0486 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for ContextLogic Inc. (NASDAQ: WISH), Citigroup launched coverage with a Sell rating. Analysts offering their rating for WISH stock have a consensus rating for the stock as Underweight. Currently, 2 brokerage advisors rate WISH as a “sell,”, while 2 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $0.50 and a high of $5.70, with their median price target at $0.80. Looking at these predictions, the average price target given by analysts is for ContextLogic Inc. (WISH) stock is $1.70.

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