Will Celgene Corporation (CELG) Stock Be Helped By This Analyst Note?

Analysts at Cantor Fitzgerald, assumed coverage of Celgene Corporation (NASDAQ:CELG) with Overweight recommendation, according to their opinion released on October 01. Standpoint Research analysts bumped their recommendation on CELG stock from Hold to Buy in a separate flash note to investors on June 18. Analysts at SunTrust are sticking to their Hold recommendation. However, on May 29, they lifted target price for these shares to $96 from $106. Analysts at SunTrust, made their first call for the stock with a Hold rating, according to a research note that dated back to May 29.

In the period that ended November 15, 2018, short interest in Celgene Corporation (NASDAQ:CELG) stock is on the rise. The 6.43% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.1 suggests buying these shares. Between October 31 and November 15, the total number of shorted shares amounted to 12.77 million shares. That was 772,155 more shares than the total of 12 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for CELG at the November 15th settlement plunged to 6,495,495, as compared to 6,549,982 at the October 31st report. That brought days to cover to 1.966475, a 7.33% increase from the 1.83223 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Celgene Corporation (NASDAQ:CELG)’s prospects. The earliest insider trade took place on 08/09/2018. Mario Ernest parted with a total of 12 thousand shares of company at average share price of $92.32. The total for the sales was set at $1.11 million. After this transaction, the Director account balance stood at 44.74 thousand shares. The stock lost -21.14 percent since that insider sale. On 08/07/2018, Weiland John H, Director, purchased 5.58 thousand shares at a price per share of $89.73. This added 500.24 thousand shares to the insider’s fortune and the stock saw a -18.87 percent retreat in value since the news became public. This transaction left 5.58 thousand shares in the Director account. On 06/07/2018, Director Casey Michael D performed a sale transaction worth $1.02 million. This sale at $78.77 each has eliminated 13 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -7.58 percent decrease since the transaction was reported. The insider now is left with 116.8 thousand shares remaining in the account. Loughlin James J, who performs the Director job, sold 17.75 thousand shares for $1.4 million. The disposal occurred on 06/04/2018 was priced at $78.96 per share. The share price plunged -7.8 percent since the reporting date. Loughlin James J now left with a stake of 36.16 thousand CELG stock worth $2.63 million after the insider selling.

Celgene Corporation (CELG) is expected to jump by 48.67 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $163-month high price target. This represents a whopping 123.9 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $103, which represents a return potential of 41.48 percent when compared to the closing price of the stock of $72.8 on Thursday, December 06. The lowest price target for the stock is $71 — slightly more than -2.47 percent from CELG’s current share price.

The shares are currently floating around the first support level of $71.51. Below this, the next support is placed in the zone of $70.21. Till the time, the CELG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.94 on daily chart, which may remain a cause for concern. If the price breaks below $70.21 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $73.62 mark may result into a pull-back move towards $74.43 level.

CELG shares accumulated 0.33 points or 0.46 percent on Thursday to $72.8 with a heavy trade volume of 6.694 million shares. The firm is left with a market cap of $51.1 billion and now has 702 million shares outstanding. Celgene Corporation (CELG) stock has lost -1.98 percent of market value in 21 trading days.

CELG stock has a trailing 3-year beta of 1.51, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.57 a share in the trailing twelve months. The stock’s value has fallen -30.24 percent year to date (YTD) against a decline of -29.02 percent in 12 month’s time. The company’s shares still trade -34.3 percent away from its 1-year high of $110.81 and 9.28 percent up from 52-week low of $66.62. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Celgene Corporation (CELG) are trading at a P/E ratio of 43.29 times earnings reported for the past 12 months. The industry CELG operates in has an average P/E of 31.13. Its P/E ratio went as low as 23.75X and as high as 61.67 over the 5-year span. Further, it is sporting a 3.47 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4. 96.4 percent is the gross profit margin for Celgene Corporation and operating margin sits at 31.1 percent. Along with this, the net profit margin is 19.6 percent.

CELG will be showing off its Q4 earnings on January 24. Analysts are forecasting revenue to climb 14 percent to $3.97B in the next fiscal quarter, while earnings are seen soaring by nearly 16 percent to $2.32 per share. History has shown that shares in Celgene Corporation have gone down on 19 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $2.29 per share, better than the $2.22, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.89B, better than the $3.85B analysts expected. Earnings are estimated to increase by 109.1 percent this year, 17.81 percent next year and continue to increase by 19.8 percent annually for the next 5 years.