Nautilus, Inc. (NLS) shares rose more than 5% during trading on Tuesday after Roth Capital raised its price target of $13.00 per share, following another major acquisition in the home fitness space. The move in Nautilus stock Lululemon Athletica Inc.’s (LULU) $ 500 million acquisition of the home fitness boot Mirror, which offers weekly live classes, on-demand training sessions, and one-to-one personal training sessions. According to Roth Capital analyst George Kelly, most of the major home fitness equipment companies have either the capital or have been acquired in recent years.
During the first quarter, the Company turnover has increased by 11% to $93.72 million, in line with consensus estimates, and GAAP earnings per share of$ 0.08, which beat the consensus estimates of 15 cents per share. The park is in sharp decline following the announcement of the results, because he had been bid more than 140% in the past six weeks, reflecting high investor expectations.
From a technical point of view, the stock broke out to new highs of nearly $10.00 per share during Tuesday’s move. The relative strength index (RSI) has been moved further into overbought territory with a reading of 76.04, but the moving average convergence divergence (MACD) remains in a bullish trend. These indicators suggest that the stock could see further upside after a period of consolidation.
Traders should watch for consolidation near the trend line support and before the peaks of around $9.00 over the coming sessions. If the stock breaks out in addition, operators could see a trend towards fresh all time highs. If the stock breaks down, traders could see a move towards support levels near the 50-day moving average at $6.68, while the scenario seems less likely to occur.
The author has no position in the stock(s) mentioned except through the passive management of index funds.