Nikolacorp Stock Buy Hold or Sell Recommendation

NKLA Stock  USD 0.53  0.01  1.85%   
Given the investment horizon of 90 days and your below-average risk tolerance, our recommendation regarding NikolaCorp is 'Strong Sell'. Macroaxis provides NikolaCorp buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NKLA positions. The advice algorithm takes into account all of NikolaCorp's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting NikolaCorp's buy or sell advice are summarized below:
Real Value
0.51
Target Price
2.42
Hype Value
0.53
Market Value
0.53
Naive Value
0.46
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell NikolaCorp given historical horizon and risk tolerance towards NikolaCorp. When Macroaxis issues a 'buy' or 'sell' recommendation for NikolaCorp, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out NikolaCorp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade NikolaCorp Stock refer to our How to Trade NikolaCorp Stock guide.
In addition, we conduct extensive research on individual companies such as NikolaCorp and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards NikolaCorp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Execute NikolaCorp Buy or Sell Advice

The NikolaCorp recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on NikolaCorp. Macroaxis does not own or have any residual interests in NikolaCorp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute NikolaCorp's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell NikolaCorpBuy NikolaCorp
Strong Sell

Market Performance

Very WeakDetails

Volatility

Out of controlDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very HighDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon NikolaCorp has a Mean Deviation of 4.14, Standard Deviation of 5.92 and Variance of 35.01
We provide investment recommendation to complement the last-minute expert consensus on NikolaCorp. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure NikolaCorp is not overpriced, please verify all NikolaCorp fundamentals, including its cash and equivalents, cash flow from operations, and the relationship between the gross profit and debt to equity . As NikolaCorp appears to be a penny stock we also strongly suggest to check its price to book numbers.

NikolaCorp Trading Alerts and Improvement Suggestions

NikolaCorp generated a negative expected return over the last 90 days
NikolaCorp has high historical volatility and very poor performance
NikolaCorp has some characteristics of a very speculative penny stock
NikolaCorp has a very high chance of going through financial distress in the upcoming years
The company reported the previous year's revenue of 35.84 M. Net Loss for the year was (864.62 M) with loss before overhead, payroll, taxes, and interest of (104.76 M).
NikolaCorp currently holds about 319.94 M in cash with (501.14 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.67, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Latest headline from kalkinemedia.com: Nikola stock rises as CEO, Stephen Girsky buys the dip should you

NikolaCorp Returns Distribution Density

The distribution of NikolaCorp's historical returns is an attempt to chart the uncertainty of NikolaCorp's future price movements. The chart of the probability distribution of NikolaCorp daily returns describes the distribution of returns around its average expected value. We use NikolaCorp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of NikolaCorp returns is essential to provide solid investment advice for NikolaCorp.
Mean Return
-0.26
Value At Risk
-6.9
Potential Upside
9.46
Standard Deviation
5.92
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of NikolaCorp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

NikolaCorp Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as NikolaCorp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NikolaCorp backward and forwards among themselves. NikolaCorp's institutional investor refers to the entity that pools money to purchase NikolaCorp's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Northern Trust Corp2023-12-31
6.3 M
Morgan Stanley - Brokerage Accounts2023-12-31
4.5 M
Susquehanna International Group, Llp2023-12-31
4.3 M
Mirae Asset Global Investments (korea) Co Ltd2023-12-31
4.2 M
The Toronto-dominion Bank2023-12-31
4.2 M
Alps Advisors Inc2023-12-31
3.3 M
Weiss Asset Management Lp2023-12-31
M
Bank Of New York Mellon Corp2023-12-31
2.6 M
Goldman Sachs Group Inc2023-12-31
2.3 M
Norges Bank2023-12-31
107 M
Vanguard Group Inc2024-03-31
80.3 M
Note, although NikolaCorp's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

NikolaCorp Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to NikolaCorp or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that NikolaCorp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a NikolaCorp stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.44
β
Beta against NYSE Composite2.47
σ
Overall volatility
5.90
Ir
Information ratio -0.06

NikolaCorp Volatility Alert

NikolaCorp exhibits very low volatility with skewness of -0.74 and kurtosis of 5.36. NikolaCorp is a potential penny stock. Although NikolaCorp may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in NikolaCorp. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on NikolaCorp instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

NikolaCorp Implied Volatility

NikolaCorp's implied volatility exposes the market's sentiment of NikolaCorp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if NikolaCorp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that NikolaCorp stock will not fluctuate a lot when NikolaCorp's options are near their expiration.

NikolaCorp Fundamentals Vs Peers

Comparing NikolaCorp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze NikolaCorp's direct or indirect competition across all of the common fundamentals between NikolaCorp and the related equities. This way, we can detect undervalued stocks with similar characteristics as NikolaCorp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of NikolaCorp's fundamental indicators could also be used in its relative valuation, which is a method of valuing NikolaCorp by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare NikolaCorp to competition
FundamentalsNikolaCorpPeer Average
Return On Equity-1.53-0.31
Return On Asset-0.35-0.14
Operating Margin(19.39) %(5.51) %
Current Valuation662.24 M16.62 B
Shares Outstanding1.36 B571.82 M
Shares Owned By Insiders5.43 %10.09 %
Shares Owned By Institutions32.25 %39.21 %
Number Of Shares Shorted230.69 M4.71 M
Price To Book1.30 X9.51 X
Price To Sales26.10 X11.42 X
Revenue35.84 M9.43 B
Gross Profit(104.76 M)27.38 B
EBITDA(606.6 M)3.9 B
Net Income(864.62 M)570.98 M
Cash And Equivalents319.94 M2.7 B
Cash Per Share0.67 X5.01 X
Total Debt284.86 M5.32 B
Debt To Equity0.54 %48.70 %
Current Ratio1.75 X2.16 X
Book Value Per Share0.44 X1.93 K
Cash Flow From Operations(501.14 M)971.22 M
Short Ratio2.26 X4.00 X
Earnings Per Share(1.06) X3.12 X
Price To Earnings To Growth(0.10) X4.89 X
Target Price1.42
Number Of Employees87018.84 K
Beta2.1-0.15
Market Capitalization729.69 M19.03 B
Total Asset1.31 B29.47 B
Retained Earnings(3.07 B)9.33 B
Working Capital312.31 M1.48 B
Net Asset1.31 B
Note: Acquisition by Stephen Girsky of 78000 shares of NikolaCorp subject to Rule 16b-3 [view details]

NikolaCorp Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as NikolaCorp . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About NikolaCorp Buy or Sell Advice

When is the right time to buy or sell NikolaCorp? Buying financial instruments such as NikolaCorp Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Total Stockholder Equity693.6M526.5M719.2M615.6M
Total Current Liabilities180.6M383.6M260.1M163.8M

Use Investing Ideas to Build Portfolios

In addition to having NikolaCorp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Coal Thematic Idea Now

Coal
Coal Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Coal theme has 12 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Coal Theme or any other thematic opportunities.
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When determining whether NikolaCorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NikolaCorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nikolacorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nikolacorp Stock:
Check out NikolaCorp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade NikolaCorp Stock refer to our How to Trade NikolaCorp Stock guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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Is NikolaCorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NikolaCorp. If investors know NikolaCorp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NikolaCorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.06)
Revenue Per Share
0.033
Quarterly Revenue Growth
(0.30)
Return On Assets
(0.35)
Return On Equity
(1.53)
The market value of NikolaCorp is measured differently than its book value, which is the value of NikolaCorp that is recorded on the company's balance sheet. Investors also form their own opinion of NikolaCorp's value that differs from its market value or its book value, called intrinsic value, which is NikolaCorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NikolaCorp's market value can be influenced by many factors that don't directly affect NikolaCorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NikolaCorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if NikolaCorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NikolaCorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.