Celgene Corporation (CELG): A Stock to Consider on Insider Selling

The insider sell/buy ratio of Celgene Corporation (NASDAQ:CELG) is recorded at 5, pointing to bearish feelings about the stock among corporate executives and directors. CELG recorded 5 sales on the open market in the last three months. They sold nearly 10,153 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 149,682 shares when buyers snapped up 10,043 shares. The 12-month’s totals signify about a 14.9-to-1 sell/buy ratio.

Mario Ernest parted with a total of 12 thousand shares of Celgene Corporation (CELG) at average share price of $92.32. This insider trade in the company took place on 08/09/2018. 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 -5.33 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 -2.6 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 10.96 percent increase 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 soared 10.69 percent since the reporting date. Loughlin James J now left with a stake of 36.16 thousand CELG stock worth $3.16 million after the insider selling.

The 12-month median price target for Celgene Corporation (CELG) assigned by the analysts stands at $101, which represents a return potential of 15.56 percent when compared to the closing price of the stock of $87.4 on Friday, January 11. The lowest price target for the stock is $84 — slightly more than -3.89 percent from CELG’s current share price. The stock will probably climb 17.6 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $150-month high price target. This represents a whopping 71.62 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 74.44 on daily chart, which may remain a cause for concern. If the price breaks below $85.79 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $87.92 mark may result into a pull-back move towards $88.43 level. The stock is currently hovering around the first support level of $86.6. Below this, the next support is placed in the zone of $85.79. Till the time, the CELG stock trades above this level, bulls have nothing to fear.

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 31.12. 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 4.17 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.

On 11th of January, Celgene Corporation (NASDAQ:CELG) shares ended higher after a volatile session. The shares accumulated 0.45 points or 0.52 percent at $87.4 with a light trade volume of 8.985 million shares. After opening the session at $86.5, the shares went as high as $87.63 and as low as $86.31, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $61.4 billion and now has 702 million shares outstanding. Celgene Corporation (CELG) stock has gained 25.77 percent of market value in 21 trading days.

CELG stock has a trailing 3-year beta of 1.57, 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 surged 36.37 percent year to date (YTD) against a decline of -17.12 percent in 12 month’s time. The company’s shares still trade -18.54 percent away from its 1-year high of $107.29 and 49.17 percent up from 52-week low of $58.59. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.