S Should I Buy
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Not a good buy right now for an impatient investor. The stock is still in a bearish trend (downtrend moving averages) with no Intellectia buy signals today, while Street sentiment has recently deteriorated via downgrades/target cuts and execution uncertainty (CFO transition + slowing momentum). There are some positive catalysts (AI-security acquisition, improving cash flow narrative), but the setup looks more like a “wait for trend confirmation” than an immediate entry.
Trend is bearish: SMA_200 > SMA_20 > SMA_5 indicates the stock remains in a downtrend. RSI(6)=38.5 is neutral-to-weak (not oversold enough to signal a high-conviction bounce). MACD histogram is slightly positive (0.0322) but positively contracting, suggesting upside momentum is fading rather than accelerating. Key levels: price ~14.07 is below the pivot 14.365; near-term support is S1=13.628 (then S2=13.172) and resistance is R1=15.102 (then R2=15.558). This is a weak technical tape until it can reclaim the pivot and hold above ~15.10.
Latest reported quarter: FY2026 Q3. Revenue grew to $258.9M (+22.91% YoY), showing continued top-line expansion, but profitability worsened: net income fell to -$60.3M (more negative, -23.06% YoY) and EPS declined to -$0.18 (-28% YoY). Gross margin slipped to 73.79% (-1.24% YoY). Overall: solid revenue growth, but the quarter shows pressure on earnings and modest margin erosion rather than clear operating leverage.
Recent trend is negative: multiple firms cut price targets after the Q3 report and CFO transition; Piper Sandler downgraded to Neutral (PT $17 from $20) and Goldman cut PT to $16.50 while staying Neutral. Several others lowered PTs (e.g., JPM $17, MS $18, DA Davidson $16), reflecting caution. Wall Street pros (bull case): platform strength (Singularity), traction in emerging AI/data/cloud products, potential upside if growth stabilizes, and valuation perceived as modest by some. Wall Street cons (bear case): management/CFO transition distraction, conservative guidance and deal-cycle uncertainty, and the view that a re-rating is unlikely until growth stabilizes. Net: cautious-to-mixed, skewing Neutral, with upside tied to proof of re-acceleration.
