Benzinga - The most overbought stocks in the financial sector presents an opportunity to go short on these overvalued companies.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.
Here’s the latest list of major overbought players in this sector.
Oportun Financial Corporation (NASDAQ: OPRT)
- Oportun Financial posted a wider-than-expected Q1 loss. "Our first quarter results reflect the continuation of our successful efforts to fortify our business economics, streamline operations and grow member engagement", said Raul Vazquez, CEO of Oportun. The company’s stock has a 52-week high of $12.79 .
- RSI Value: 73.21
- OPRT Price Action: Shares of Oportun Financial rose 7.5% to close at $4.32 on Monday.
- Lemonade posted better-than-expected quarterly results. The company’s stock has a 52-week high of $32.97.
- RSI Value: 75.32
- LMND Price Action: Shares of Lemonade rose 11.1% to close at $16.26 on Monday.
- AMERISAFE posted upbeat quarterly results. G. Janelle Frost, President and Chief Executive Officer commented, "AMERISAFE’s first quarter results reflect the company’s disciplined approach to risk selection and adequate pricing within the high-hazard workers’ compensation market." The company has a 52-week high of $60.49.
- RSI Value: 74.15
- AMSF Price Action: Shares of AMERISAFE fell 0.6% to close at $56.22 on Monday.
- Cantaloupe reported better-than-expected Q3 EPS and sales results. "We experienced strong financial results in Q3, with record revenue in transaction fees and subscription fees, which demonstrates progress on our strategic initiatives and the adoption of our new products," said Ravi Venkatesan, chief executive officer, Cantaloupe. The company’s 52-week high is $7.05.
- RSI Value: 76.43
- CTLP Price Action: Shares of Cantaloupe fell 0.5% to close at $6.71 on Monday.
- Arthur J. Gallagher & Co. reported the acquisition of Woodland Hills, California-based Leavitt Insurance Services of Los Angeles. The company has a 52-week high of $215.71.
- RSI Value: 70.01
- AJG Price Action: Shares of Arthur J. Gallagher rose 0.7% to settle at $215.32 on Monday.
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