2 Reasons to Like iRobot Right Now

IRBT shorts have been covering their bearish bets

May 8, 2019 at 1:30 PM
facebook X logo linkedin


iRobot Corporation (NASDAQ:IRBT) stock gapped down more than 23% on April 24, in reaction to a rare revenue miss for the Roomba maker. IRBT shares have been chopping near the $98 level since, but a pair of data points is suggesting the tech stock could be ready to run higher.

For starters, iRobot stock is hovering near oversold territory, per its 14-day Relative Strength Index (RSI). The indicator was last seen at 30.3, after spending some of the last few trading days of April below the 30 mark. Data from Schaeffer's Senior Quantitative Analyst Rocky White shows the RSI indicator has been one of the best buy signals for stocks in recent years.

Plus, the security's recent pullback has it trading within one standard deviation of its 52-week moving average after a lengthy stretch above it, defined as being above the moving average 80% of the time for the past 20 weeks. According to the previous nine signals that have flashed over the past 15 years, IRBT stock was up an average 3.9% one month later.

A continued round of short covering could create tailwinds for iRobot stock. Short interest dropped 8.6% in the two most recent reporting periods to 8.14 million shares. This still accounts for nearly 30% of the security's float, or 17.7 times the average daily pace of trading.

Ahead of its recent slide, the stock was trading near its March 5 record high of $132.88, topping out at an intraday high of $132.30 on April 23. IRBT shares are still up 17.5% year-to-date, and nearly 58% year-over-year.

irobot stock weekly chart may 8

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI