Drilling Down Into Celgene Corporation (CELG)

Celgene Corporation (CELG) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $127.58, down from yesterday’s close by -2.80%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. Celgene Corporation (CELG) currently trades with a market capitalization of $99.63 Billion. That value represents a market adjusting for revenues that have been growing by 18.65 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CELG, the company currently has $6.66 Billion of cash on the books, which is offset by $500 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $4.28 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.72 on a per share basis this quarter. Perhaps, that suggests something about why 77.57% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Celgene Corporation recorded a 52-week high of $139.00. It is now trading 11.42% off that level. The stock is trading $131.48 its 50-day moving average by 3.9%. The stock carved out a 52-week low down at $96.93.

In recent action, Celgene Corporation (CELG) has made a move of -6.40% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 0.33, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.17% with $780.37 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CELG.

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