What's Going On With Nikola Stock Friday?

Zinger Key Points
  • Nikola Corporation is on the preliminary list of Russell 3000 2024 index deletions.
  • Nikola shares are trading well-below the stock's 50-day moving average of 68 cents and just above its 52-week low of 49 cents. 

Nikola Corporation NKLA shares are trading higher Friday. The stock recently notched a new all-time low of 49 cents. Here's a look at what's going on. 

The Details:

Nikola shares fell to a new all-time low during Wednesday's session, but made a slight recovery Thursday ending the session nearly 5% higher. Shares are moving slightly higher in early trading Friday, as well. 

The Russell 3000 index has begun its 2024 Reconstitution process, and Nikola Corporation is on the preliminary list of index deletions. If the deletion of Nikola proceeds, the company will be removed from the index as of the end of trading on June 28, 2024. 

The company has asked stockholders to vote in favor of Proposal 2 which would allow Nikola to effect a reverse stock split in order to address potential delisting concerns. Voting closes at 11:59 p.m. ET on June 4. 

According to data from Benzinga Pro, shares are trading well-below the stock’s 50-day moving average of 68 cents and just above its 52-week low of 49 cents. 

Related News: Marvell Reports Worse-Than-Expected Q1 Results: The Details

Should I Sell My NKLA Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Nikola have decreased by 10.11% in the past year. An investor who bought shares of Nikola at the beginning of the year would take a loss of $0.31 per share if they sold it today. The stock has fallen 14.07% over the past month, meaning an investor who bought shares on Apr. 1 would see a capital loss of $0.45.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Nikola stock currently has an RSI of 45.01, indicating neutral conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

NKLA Price Action: According to Benzinga Pro, Nikola shares are up 1% at 52 cents at the time of publication Friday.

Image: Courtesy of Nikola Corporation

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