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Allena Pharmaceuticals (ALNA) Enters Overbought Territory

Zacks Equity Research
RLI Corp. (RLI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Allena Pharmaceuticals, Inc. ALNA has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because ALNA is now in overbought territory with an RSI value of 79.67.

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 ALNA’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 Allena Pharmaceuticals’ stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of ALNA’s prospects for the near term.

Over the past two months, investors have witnessed 2 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for ALNA has also been on a downward trend over the same time period too, as the estimate has fallen from -$1.38/share two months ago to just -$1.68/share today.

If this wasn’t enough, Allena Pharmaceuticals also has a Zacks Rank #4 (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.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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Allena Pharmaceuticals, Inc. (ALNA) : Free Stock Analysis Report
 
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Zacks Investment Research