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Will Glu Mobile Bounce Back after Falling 21% this Month?

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Stock returns

Glu Mobile (GLUU) stock has lost over 21% in May 2019. However, despite the recent pullback, the stock is still up close to 7% in calendar 2019.

The stock is up 58% in the trailing 12 months while it has risen by a compound annual growth rate of 53% in the last three years and] 18% in the last five years. Does Glu Mobile stock have enough steam to rise in 2019 and beyond?

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Wall Street estimates

Of the six analysts tracking Glu Mobile stock, four have given it “buy” recommendations, two say “hold,” and none say “sell.” The average 12-month target price for Glu Mobile is $11.51, indicating that the stock is trading at a discount of 33% to the consensus estimate.

Glu Mobile stock is oversold

Glu Mobile’s 14-day MACD (moving average convergence divergence) is -1.30. A stock’s MACD is the difference between its short-term and long-term moving averages. The company’s negative MACD indicates a downward trading trend.

Glu Mobile has a 14-day RSI (relative strength index) score of 27, which shows that it’s trading well into oversold territory. An RSI score above 70 indicates that a stock is overbought while an RSI score below 30 indicates that a stock is oversold.

On May 14, Glu Mobile closed the trading day at $8.63. Based on that price, the stock was trading as follows:

  • 11% below its 100-day moving average of $9.66
  • 17% below its 50-day moving average of $10.43
  • 16% below its 20-day moving average of $10.32
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