- VVX released its earnings report on 6 November 2023, which missed the market estimates.
- The company’s V2X stock price has fallen over 20% in a single day, the biggest decline in three years.
- RBC Cut down the target price of the VXX stock price.
In the previous trading session i.e. 6 November 2023, the VVX stock price witnessed a decline of over 20% in a single day. This fall was triggered after the company released its earnings reports for Q3. It is the biggest fall the stock has shown in the last three years. Before that, the stock price witnessed a 22% fall in March 2020.
The VVX stock price has shown this decline as the company has released earnings way below the market estimations. The Adjusted EPS estimated by the market was $0.86 per share and the company reported $0.73 per share. It was $1.35 per share a year earlier. However, it has reported an increased revenue standing at $1 Billion, which was expected at $958 million.
The rating firm RBC has initiated a cut on the target price of the VVX stock. It has revised its previous target of $62 and set a new target of $55 for the stock. However, the firm has maintained its “outperform” rating on the stock. The stock price has taken it positively as it has surged by over 2% in the current trading session.
Can The V2X Stock Price Reach $50 In 2023?
The V2X Stock price has formed an ascending triangle pattern on the daily chart and it has recently broken this trendline. The stock price has performed poorly in its Q3 earnings report and witnessed some selling pressure. It has formed a gap on the chart as the stock price was opened with a gap down.
The Ascending triangle pattern is considered bullish but the stock price has breached this pattern on the downside. However, the stock price is taking good support from the level of $40.64. The next support for the price is present near the level of $37.51. If the stock price reverses from here, it can move towards $48.80 and $55.90.
Have EMAs and Relative Strength Index Turned Bearish?
The V2X stock price is currently trading below the 50-day and 200-day EMAs which is a bearish sign for the stock. It is trading way below both the EMA level and the stock can reduce the gap between the price and the EMA in the future.
The RSI is currently curving below the 30-level mark, which indicates that the stock price has currently oversold and needs to consolidate before falling more. The slope of the RSI has fallen from the 70 level mark, which indicates the possible trend reversal.
Conclusion
The V2X stock price has declined massively after the earning reports and the future outlook of the stock is looking doubtful, which created a panic selling in the stock. However, several rating firms are still expecting that the price can reach higher levels in the coming time.
Technical Level
Resistance – $48.80 and $55.90
Support – $40.64 and $37.51
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
