Any investors would pay particular attention to the profitability of a company before considering taking a position. Here we’ll take a quick look at shares of Diana Containerships Inc. (NASDAQ:DCIX) and the company’s ability to generate profit. The firm currently has a Return on Equity -74.90% which is derived from comparing 12-months net income to shareholder equity. So even though the company is generating profits, where can the stock go from here? Sell-side analysts covering the shares are projecting a one year price target of $8.00 on the stock. When comparing this to a recent price of $2.96, the potential upside should be noted. Taking analyst recommendations into consideration results in a Buy/Sell consensus recommendation of 5.00. This is according to all of the analysts polled by First Call.
What makes a stock profitable? Let’s look at a few factors.
Rising EPS (Earnings Per Share)
Businesses must be able to have competitive advantages and must produce value to consumers in the form of desirable goods and services. When a business has a strong brand, they can afford to raise prices and also have a differentiated product that is more desirable compared to their competition. A business that is able to grow earnings per share can afford to pay a rising dividend. Diana Containerships Inc. (NASDAQ:DCIX)’s trailing 12-months EPS is -16.32.
Diana Containerships Inc. (NASDAQ:DCIX)’s performance this year to date is 6.47%. The stock has performed 4.96% over the last seven days, 34.55% over the last thirty, and -2.63% over the last three months. Over the last six months, Diana Containerships Inc.’s stock has been -20.22% and -35.62% for the year.
RSI and Recommendations
Diana Containerships Inc.’s RSI is 51.52. Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 18.86% and month of 17.09%.
There are a number of sell-side analysts who have recently weighed in on the firm. As stated earlier, the consensus target price is $8.00 with a mean recommendation of 5.00 (1-5 scale).
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