Based on recent data and legal developments, selling KSPI stock appears prudent due to significant legal risks and operational concerns. Multiple class action lawsuits have been filed against the company, alleging securities fraud between January 19, 2024, and September 19, 2024, with claims about undisclosed Russian business dealings and questionable related party transactions. The deadline for joining these lawsuits is February 18, 2025.
The technical indicators show bearish signals with MACD at -0.32 and RSI at 50.02, suggesting downward momentum. The stock is trading below both its 20-day SMA (95.06) and 60-day SMA (101.21), indicating a negative trend.
While JPMorgan previously rated KSPI as their top pick for 2025 with a price target of $137, they recently lowered it from $154, citing concerns about the company's fundamentals and investor messaging. The current legal challenges and allegations of undisclosed risks related to Russian operations could further pressure the stock price.