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A Look at NiSource’s Short Interest and Technical Indicators

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Technical indicators

As of September 6, 2016, NiSource (NI) was trading at a 4% discount and a 6% premium to its 50-day and 200-day moving averages, respectively. The stock has waned since early July and broke below its 50-day moving average in the first week of August. The weakness in the stock is likely to continue until it crosses above this level.

Currently, NiSource’s RSI (relative strength index) is 45. It has bounced back from the levels near 30 it saw last week. RSI is a momentum indicator made up of values between 0 and 100. RSI levels of below 30 are considered to be in the oversold zone and levels of above 70 are considered to be in the overbought zone.

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Short interest

According to a recent FINRA (Financial Industry Regulatory Agency) report, short interest in NiSource increased by 3.4% on August 15, 2016. The total shorted shares increased from 8.1 million on July 29, 2016, to 8.4 million on August 15, 2016. The increased short interest hints that the traders are expecting NiSource to follow a downtrend from its current price levels.

Price targets

According to Wall Street analysts’ estimates, NiSource has a one-year median price target of $25.33, compared with a current market price of $24.13. This amounts to a possible upside of 5% over the next year.

Of the 14 analysts tracking NiSource, eight have recommended it as a “hold,” and three have recommended it as a “buy.” Three analysts have recommended it as a “sell” as of September 6, 2016.

DTE Energy (DTE) has a possible price target of $102. It’s currently trading at $93.20. This implies an upside of 10% over the next year. Eversource Energy (ES) has a price target of $60.75. It’s currently trading at $54.37. This implies a possible upside of 12% over the next year.

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