The Black Swan Theory: Endo International plc (ENDP), Nabors Industries Ltd. (NBR)

Endo International plc (NASDAQ:ENDP) has its shares plummet by -53% or $6.62 from its all-time high of $12.49, with ENDP attaining that price back on February 28, 2019. The drop in the price of the shares saw it stand at $5.87 per share. ENDP has been trading at a low of $1.97 over the past one year but it surged by 197.97% or $3.9 to reach the $5.87 mark. Following the massive rise in stock price, ENDP received more attention from investors and analysts. On Wednesday, the stock plunged by 7.31%, which caused investors and analysts to excite about it. Following the plunge in price, the ENDP beta stands at 1.52, implying that its volatility level has gone up by -0.52 ahead of the general market. A look at the stock’s 200-day moving average shows that it is 26.05% above while its 50-day moving average shows that it is currently 26.35% above. Compared to 7.4% average daily volatility of past month, the stock’s average volatility for this week has increased by 2.83 as the volatility level currently stands at 10.23%.

Over the past seven days, the stock has witnessed a price surge by 34.63%. This massive rise in stock price has caught the attention of both investors and market traders. The stock has performed poorly over the past 52 weeks, dropping by -39.04% during that time frame and is now up by 25.16% since this point this year. ENDP has surged by 26.78% over the past 30 days, with its equity price gaining% of its value over the past ninety days. These figures add up to see the stock record a growth of 67.71% over the past six months.

Market analysts from research firms still remain bullish about the short-term performance of ENDP. Most of them are of the view that the stock would be able to reach $5.17 over the next 12 months. If that happens, then the stock would witness a -11.93% fall in its price and that would see the stock’s market cap hit an astonishing $1 Billion. Analysts view this stock as a bearish at the moment as its average rating is 3. According to Reuters, many of the 12 analysts covering the stock at the moment believe it is a Buy. 8 of them rated ENDP as a Hold while 2 of them either rated it as a Buy or a Strong Buy. However, 2 of them advised investors to sell the stock if they have it or shouldn’t buy it if they don’t possess any.

The stock’s technical analysis reveals that its 14-day Relative Strength Index (RSI) is currently in a overbought position as it was able to attain 70.41 points. The trading volume now standing at 12629020 shares. The increase of 4429020 shares in trading volume shows that traders and investors have shown more interest in the stock over the past few weeks. During that trading session, the average trading volume of ENDP was 8200000 shares, which is more than 1.54 times higher than its usual trading volume.

The stock has an average rating of 2.7 which means that it has been rated as a Hold by most analysts. The stock is being covered by 15 analysts who gave a consensus recommendation of 2.7 which implies that it is currently in a neutral situation. Reuters looked into analysts covering Nabors Industries Ltd., and 8 of them believe that the stock is a Hold at the moment. 7 of the analysts rated it as a Buy or a Strong Buy while the remaining analysts (4) rated it as a sell at the moment.