Can Buying Jumia Technologies Ag ADR (NYSE: JMIA) Still Be Worthwhile?

Jumia Technologies Ag ADR (NYSE:JMIA) does about 3.90M shares in volume on a normal day but saw 2412073 shares change hands in Friday’s trading. The company now has a market cap of 607.85M USD. Its current market price is $6.01, marking a decrease of -3.53% compared to the previous close of $6.23. The 52 week high reached by this stock is $8.10 whilst the lowest price level in 52 weeks is $2.22.

Jumia Technologies Ag ADR (JMIA) has a 20-day trading average at $4.82 and the current price is -25.80% off the 52-week high compared with 170.11% distance from its 52-week low. The 50-day simple moving average of the closing price is $5.47 and its 200-day simple moving average is $3.78. If we look at the stock’s price movements over the week, volatility stands at 10.90%, which decreases to 8.50% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 63.29 to suggest the stock is neutral.

The consensus objective for the share price is $4.00, suggesting that the stock has a potential downside of -50.25% over the period.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on January 03, 2024 when Morgan Stanley upgraded the stock to “Equal-Weight” and issued a price target of between $3 and $3.60. Morgan Stanley downgraded the stock to “Underweight” from Equal-Weight on November 29, 2021 at a price target of $11. Stifel downgraded its price target at $8-$4.50.

Jumia Technologies Ag ADR (JMIA) stock is up 18.77% over the week and 23.66% over the past month. Its price is 70.25% year-to-date and 100.33% over the past year.

The stock last released its quarterly earnings report for quarter ended 3/31/2023, with the company’s earnings per share (EPS) of -0.48 above consensus estimates by 0.19. The company’s next earnings report forecasts estimating quarterly EPS at 0 and -0.98 for whole year. Expected sales for next quarter are $44.89M, which analysts say will come at $186.4M for the current fiscal year and next year at $189.68M. In addition, estimates put the company’s current quarterly revenue at an average of $48.52M.

To reach the target analysts have set, the stock logically needs to shrink -50.25 percent from here.

The company has a return on investment of -250.00% and return on equity of -120.18%. The beta has a value of 2.90. Price to book ratio is 14.13 and price to sales ratio is 3.01.