Oil States International, Inc. (OIS) is now in overbought territory with an RSI value of 72.79.
OIS stock prices moved from $107.58 on May 30 to $61.61 on Jun 2. This price change is a direct result of the spin-off of the Accommodations business segment, Civeo Corporation, into a separately traded public company effective as of May 30, 2014. Civeo Corporation (CVEO) began regular way trading on the NYSE on June 2, 2014, as did OIS.
However, the adjusted closing price on May 30 was $61.47 and on Jun 2 was $61.61. OIS closed at $63.72 on Jun 17, 2014.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet OIS’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in Oil States’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of OIS’s prospects for the near term.
Over the past two months, investors have witnessed 4 earnings estimate revisions lower compared to none higher for the current year.
Oil States also has a Zacks Rank #5 (Strong Sell) which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth.
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(We are reissuing this article to correct a mistake. The original article, issued on June 16, should no longer be relied upon.)
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