TURIN: The stock of Fiat Chrysler Automobiles NV (NYSE:FCAU) gapped down by $0.49 today and has $5.87 target or 7.00% below today’s $6.31 share price. The 8 months technical chart setup indicates high risk for the $9.27B company. The gap down was reported on Jun, 25 by Barchart.com. If the $5.87 price target is reached, the company will be worth $648.90M less. Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 12.24% or $0.88 during the last trading session, hitting $6.31. About 13.85 million shares traded hands or 124.84% up from the average. Fiat Chrysler Automobiles NV (NYSE:FCAU) has declined 18.74% since November 17, 2015 and is downtrending. It has underperformed by 21.81% the S&P500.
Analysts await Fiat Chrysler Automobiles NV (NYSE:FCAU) to report earnings on August, 4. They expect $0.44 EPS, up 37.50% or $0.12 from last year’s $0.32 per share. FCAU’s profit will be $646.40M for 3.59 P/E if the $0.44 EPS becomes a reality. After $0.38 actual EPS reported by Fiat Chrysler Automobiles NV for the previous quarter, Wall Street now forecasts 15.79% EPS growth.
Out of 12 analysts covering Fiat Chrysler (NYSE:FCAU), 4 rate it a “Buy”, 4 “Sell”, while 5 “Hold”. This means 31% are positive. Fiat Chrysler has been the topic of 8 analyst reports since August 24, 2015 according to StockzIntelligence Inc.
According to Zacks Investment Research, “Fiat Chrysler Automobiles NV operates as an international automotive company. It is engaged in designing, engineering, manufacturing, distributing and selling vehicles and components and production systems. The Company operates under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands. It also produces metallurgical products and production systems for the automobile industry, and owns publishing and insurance companies. Fiat Chrysler Automobiles NV is based in United Kingdom.”