Canoo Inc. (NASDAQ:MULN) shares are moving Wednesday, and the stock is up more than 24% over the past five days. Here's a look at what's going on.

What To Know:

Benchmark analyst Michael Legg initiated coverage on Canoo with a Buy rating and a price target of $5 Wednesday.

Legg highlighted the company's pipeline which features $750 million in contracted orders with clients including Walmart Inc., the United States Postal Service and the U.S. military. The analyst said that the market appears to have "lost sight of the magnitude of the opportunity" in Canoo.

Canoo has grabbed the interest of retail investors and short-sellers alike. 19.94% of available Canoo shares are being sold short, according to the latest data from Benzinga Pro.

Should I Sell My GOEV Stock?

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

Shares of Canoo have decreased by 82.69% in the past year. An investor who bought shares of Canoo at the beginning of the year would take a loss of $2.35 per share if they sold it today. The stock has risen 5.78% over the past month, meaning an investor who bought shares on March 1 would see a capital gain of $0.73.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Canoo stock currently has an RSI of 78.53, indicating overbought conditions.

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GOEV Price Action: According to Benzinga Pro, Canoo shares are flat at $2.93 at the time of publication Wednesday.