Digging Up the Facts on The Medicines Company (MDCO)

The Medicines Company (MDCO) is an interesting player in the Healthcare space, with a focus on Drugs – Generic. The stock has been active on the tape, currently trading at $26.53, down from yesterday’s close by -1.85%. 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. The Medicines Company (MDCO) currently trades with a market capitalization of $2.01 Billion. That value represents a market adjusting for revenues that have been falling by -55.13 % 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 MDCO, the company currently has $166.73 Million of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $-372.89 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-1.32 on a per share basis this quarter. Perhaps, that suggests something about why 98.66% 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, The Medicines Company recorded a 52-week high of $55.95. It is now trading 29.42% off that level. The stock is trading $32.37 its 50-day moving average by 5.84%. The stock carved out a 52-week low down at $26.99.

In recent action, The Medicines Company (MDCO) has made a move of -11.60% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.32, and it’s gotten there by action that has been less 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 26.16% with $70.67 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of MDCO.

Previous articleTaking a Look at the Data Behind Zynga Inc. (ZNGA)
Next articleCentury Aluminum Company (CENX): What’s the Story?