Nikola Corp Stock Buy Hold or Sell Recommendation
| NKLA Stock | USD 9.33 0.05 0.53% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Nikola Corp is 'Strong Sell'. Macroaxis provides Nikola Corp buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NKLA positions.
Check out Nikola Corp 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 Nikola Stock refer to our How to Trade Nikola Stock guide. In addition, we conduct extensive research on individual companies such as Nikola and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Nikola Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Nikola |
Execute Nikola Corp Buy or Sell Advice
The Nikola recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Nikola Corp. Macroaxis does not own or have any residual interests in Nikola Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Nikola Corp's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Unstable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Nikola Corp Trading Alerts and Improvement Suggestions
| Nikola Corp generated a negative expected return over the last 90 days | |
| Nikola Corp has high historical volatility and very poor performance | |
| Nikola Corp 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). | |
| Nikola Corp 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. | |
| Latest headline from fool.com: Is Nikola a Millionaire Maker |
Nikola Corp Returns Distribution Density
The distribution of Nikola Corp's historical returns is an attempt to chart the uncertainty of Nikola Corp's future price movements. The chart of the probability distribution of Nikola Corp daily returns describes the distribution of returns around its average expected value. We use Nikola Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Nikola Corp returns is essential to provide solid investment advice for Nikola Corp.
| Mean Return | -0.85 | Value At Risk | -9.65 | Potential Upside | 8.39 | Standard Deviation | 6.43 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Nikola Corp 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.
Nikola Stock Institutional Investors
| Shares | Northern Trust Corp | 2024-03-31 | 7.1 M | Coatue Management Llc | 2024-03-31 | 5.2 M | Mirae Asset Global Investments (korea) Co Ltd | 2024-03-31 | 4.6 M | Morgan Stanley - Brokerage Accounts | 2024-03-31 | 4.4 M | Sg Americas Securities, Llc | 2024-03-31 | 3.8 M | Bank Of America Corp | 2024-03-31 | 3.6 M | Alps Advisors Inc | 2024-03-31 | 3.3 M | Bank Of New York Mellon Corp | 2024-03-31 | 2.6 M | Swiss National Bank | 2024-03-31 | 2.2 M | Norges Bank | 2023-12-31 | 107 M | Vanguard Group Inc | 2024-03-31 | 80.3 M |
Nikola Corp 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 Nikola Corp 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 Nikola Corp'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 Nikola 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 Dow Jones | -0.88 | |
β | Beta against Dow Jones | 0.22 | |
σ | Overall volatility | 6.54 | |
Ir | Information ratio | -0.15 |
Nikola Corp Volatility Alert
Nikola Corp is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nikola Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nikola Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Nikola Corp Implied Volatility
Nikola Corp's implied volatility exposes the market's sentiment of Nikola Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nikola Corp'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 Nikola Corp stock will not fluctuate a lot when Nikola Corp's options are near their expiration.
Nikola Corp Fundamentals Vs Peers
Comparing Nikola Corp'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 Nikola Corp's direct or indirect competition across all of the common fundamentals between Nikola Corp and the related equities. This way, we can detect undervalued stocks with similar characteristics as Nikola Corp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Nikola Corp's fundamental indicators could also be used in its relative valuation, which is a method of valuing Nikola Corp by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Nikola Corp to competition |
| Fundamentals | Nikola Corp | Peer Average |
| Return On Equity | -1.53 | -0.31 |
| Return On Asset | -0.35 | -0.14 |
| Operating Margin | (19.39) % | (5.51) % |
| Current Valuation | 356.7 M | 16.62 B |
| Shares Outstanding | 45.22 M | 571.82 M |
| Shares Owned By Insiders | 5.43 % | 10.09 % |
| Shares Owned By Institutions | 32.26 % | 39.21 % |
| Number Of Shares Shorted | 9.6 M | 4.71 M |
| Price To Book | 1.30 X | 9.51 X |
| Price To Sales | 26.10 X | 11.42 X |
| Revenue | 35.84 M | 9.43 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 Equivalents | 319.94 M | 2.7 B |
| Cash Per Share | 0.67 X | 5.01 X |
| Total Debt | 284.86 M | 5.32 B |
| Debt To Equity | 0.54 % | 48.70 % |
| Current Ratio | 1.75 X | 2.16 X |
| Book Value Per Share | 13.10 X | 1.93 K |
| Cash Flow From Operations | (501.14 M) | 971.22 M |
| Short Ratio | 1.64 X | 4.00 X |
| Earnings Per Share | (31.80) X | 3.12 X |
| Price To Earnings To Growth | (0.10) X | 4.89 X |
| Target Price | 29.0 | |
| Number Of Employees | 870 | 18.84 K |
| Beta | 2.09 | -0.15 |
| Market Capitalization | 424.15 M | 19.03 B |
| Total Asset | 1.31 B | 29.47 B |
| Retained Earnings | (3.07 B) | 9.33 B |
| Working Capital | 312.31 M | 1.48 B |
| Net Asset | 1.31 B |
Note: Acquisition by Stephen Girsky of 78000 shares of NikolaCorp subject to Rule 16b-3 [view details]
Nikola Corp Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Nikola . 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.
| Accumulation Distribution | 106406.0 | |||
| Daily Balance Of Power | (0.09) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 9.41 | |||
| Day Typical Price | 9.38 | |||
| Price Action Indicator | (0.10) | |||
| Period Momentum Indicator | (0.05) |
About Nikola Corp Buy or Sell Advice
When is the right time to buy or sell Nikola Corp? Buying financial instruments such as Nikola 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.| 2023 | 2024 (projected) | Depreciation And Amortization | 35.9M | 37.7M | Interest Income | 181.8K | 172.7K |
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Additional Information and Resources on Investing in Nikola Stock
When determining whether Nikola Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Nikola Corp'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 Nikola Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nikola Corp Stock:Check out Nikola Corp 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 Nikola Stock refer to our How to Trade Nikola Stock guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Construction Machinery & Heavy Transportation Equipment space 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 Nikola Corp. If investors know Nikola 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 Nikola Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (31.80) | Revenue Per Share 0.983 | Quarterly Revenue Growth (0.30) | Return On Assets (0.35) | Return On Equity (1.53) |
The market value of Nikola Corp is measured differently than its book value, which is the value of Nikola that is recorded on the company's balance sheet. Investors also form their own opinion of Nikola Corp's value that differs from its market value or its book value, called intrinsic value, which is Nikola Corp'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 Nikola Corp's market value can be influenced by many factors that don't directly affect Nikola Corp'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 Nikola Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nikola Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nikola Corp'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.