Spartan Motors Inc. (SPAR)

Spartan Motors stock forecast: buy or sell

Spartan Motors stock outlook

  • Counting on Thursday, it's been 4 consecutive sessions in green for Spartan Motors. Price closed on Thursday at $14.79 after sinking a -5.43%.
  • The price is currently under the lower Bollinger band, which usually indicates a short-term rebound that you should not try to trade
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Important:
The opinions given in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the specific circumstances of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for learning reasons only

Spartan Motors stock chart overview

Should I buy Spartan Motors stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is SPAR stock a buy?

Currently, Spartan Motors stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for SPAR in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Spartan Motors stock?

How to know when is it time to sell Spartan Motors?. Like when we have to buy shares, choosing when is the best time to sell is not a whimsical decision, and we must follow our own trading strategy. When selling, as well as buying, our setups are very simple to use but are only applicable for selling stocks you already own, not for shorting Spartan Motors stock

As a golden rule, you should not mantain an operation that leads to losses greater than those expected by the time of the buy. The moment to sell shares must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Spartan Motors stock?

In the current situation of Spartan Motors there is not any eligible sell setup, so Spartan Motors stock holders with operations in profit can keep their positions

Price lost SMA50 level

Nevertheless that bullish trend may have come to an end, or show signs of weakening, by now that the price lost that moving average threshold on Tuesday. This is a good time to revise your current setup for this position and consider if it's time to sell

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Analysts' recommendations to buy or sell Spartan Motors stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days we couldn't find any rating for Spartan Motors

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Technical analysis

SMAs overview

Moving averages are tools for traders to measure market direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Traders use supports and resistances as a way to find price points in the stock price action that tend to behave as barriers, preventing the price of shares to move up or down. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until approaching another support level. On the contrary, resistance levels are where the price tends to find opposition as it moves up. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally breaks this level, it will rally easily until it meets the next resistance

The current resistance levels are:

  • R1: $14.93 (0.95% above)
  • R2: $15.08 (1.96% above)
  • R3: $15.19 (2.7% above)
  • The current supports are:

  • S1: $14.65 (-0.95% below)
  • S2: $14.23 (-3.79% below)
  • S3: $13.90 (-6.02% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. By essence, the Bollinger Bands are lines that run around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price levels both above or below the Bollinger Bands signal that the price has followed a strong trend that has led to extreme upward or downward values. For this case, the price is beneath the upper band, and that should mean a possible near-term bounce (at least) until it is back above the band

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price movements to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    When the RSI stays for so long below 70 and above 30, without indication of overvaluation and undervaluation, the indicator turns out to be of little use, and we find ourselves in one of these cases.

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    Earnings and financials

    Spartan Motors Inc. (SPAR) posted EPS for the fiscal Q1 that highly enhanced Wall St. expectations. Quarterly EPS was $0.47 per share versus $0.36. This Q1 report represents an earnings surprise of 30.56%. On the contrary, reported sales were $176.9 million, consistent with analysts' forecasts.

    Compared to the same quarter one year ago, EPS was $0.04, so posted EPS is a improvement of 1075%. Looking at revenues, figures tanked a -24.37% compared to $234.0M same quarter a year ago.

    Spartan Motors releases earnings report on late next July. Market predicts earnings of %s a share of $0.18, compared to Q1 that was $0.47. Financial reporting day has an additional risk for stock traders as the information disclosed can jump up or down the stock price with exceptionally low liquidity and not respecting your buy or stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

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