On FRIDAY, shares of Churchill Capital Corp IV (NYSE:CCIV) reached at $30.75 price level during last trade its distance from 20 days simple moving average was -16.49%, and its distance from 50 days simple moving average was 34.50% while it has a distance of 95.72% from the 200 days simple moving average. Car company stocks took a beating in 2020 amid falling auto sales in the U.S. and abroad following the coronavirus crisis. However, analysts believe that industry is ripe for investment in 2021 as consumer spending begins to come back to normal levels. The automotive sector is also undergoing key changes that will make the industry grow faster. Riding this tide of change are innovative, futuristic car companies that are posing a serious challenge to big players like Ford and General Motors. One such promising company is luxury EV maker Lucid Motors, which plans to merge with special purpose acquisition company Churchill Capital Corp IV (CCIV) to go public. Lucid Motors is reportedly valued at a whopping $57 billion. Earlier this week, Lucid’s CEO Peter Rawlinson gave an interview to CNBC and talked about the upcoming trends in the car industry and his company’s plans for the future.
Despite the pandemic, the sales of electric vehicles surged 43% last year and continue to increase. Roughly 26.9 million electric vehicles are projected to be sold by 2030.
Three months ago we published the list of 10 best auto stocks to buy using Insider Monkey’s hedge fund sentiment data. Since then there have been several changes in this space. General Motors announced its plans towards an all-electric future; China’s search giant Baidu is setting up an EV venture with Geely; and even Apple is not-so-secretly working on an electric vehicle. We didn’t include Apple in our rankings because only a tiny percentage of its market value is attributable to the automotive industry. We also didn’t include Alphabet Inc (GOOGL) for the same reason even though its Waymo unit is a major player in the autonomous driving space. On the other hand, more than half of Baidu’s market cap can be attributed to its EV exposure.
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In September 2020, Moody’s changed its outlook for the global automotive industry to Stable from Negative, citing a recovery and an expected jump in sales in 2021. Moody’s analysts in their report project light vehicle sales to fall 19% in 2020 to about 73 million, but rebound to 80 million in 2021.
Past 5 years growth of CCIV observed at 0, and for the next five years the analysts that follow this company are expecting its growth at 0. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges.
The stock has a market cap of $6.37B with 207.00M shares outstanding, of which the float was 0 shares. Analysts consider this stock active, since it switched Trading volume reached 68,362,975 shares as compared to its average volume of 41.15M shares. The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.
But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. CCIV’s relative volume was 1.66. Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.
The volatility value is used by the investors for various reasons and purposes in measuring the fundamental price change and the rate of variation in CCIV’s price. The ART is a specific type of indicator, which is capable of weighing up stock volatility in the financial markets effectively.
Churchill Capital Corp IV has an average true range (ATR) of 7.76. Other technical indicators are worth considering in assessing the prospects for EQT. CCIV’s price to sales ratio for trailing twelve months was 0 and price to book ratio for most recent quarter was 0, whereas price to cash per share for the most recent quarter was 0. The Company’s price to free cash flow for trailing twelve months was 0. Its quick ratio for most recent quarter was 0. Analysts mean recommendation for the stock was 0. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Should You Go With High Insider Ownership?
Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance.
Churchill Capital Corp IV‘s shares owned by insiders remained 0, whereas shares owned by institutional owners are 28.30%.
However, it represents stronger momentum in the market. In the meantime, the Accenture plc’s 14-day RSI was settled at 47.50. All in all, the trends of the stock market were shifting slowly but surely.
Meanwhile, CCIV traded under umbrella of Financial sector, the stock was traded -52.59% ahead of its 52-week high and 220.31% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.