Short-Sellers Onto Something at Cerus Corporation (CERS)

In the period that ended January 31, 2019, short interest in Cerus Corporation (NASDAQ:CERS) stock is on the decline. The 0.14% drop could be an indication that investors and traders expect a strength in the stock price, often as a result of a strength in the business’ fundamentals. The average analyst recommendations at 0 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 3.75 million shares. That was 5,365 less shares than the total of 3.75 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for CERS at the January 31st settlement plunged to 655,759, as compared to 729,428 at the January 15th report. That brought days to cover to 5.715524, a 11.08% increase from the 5.145636 days to cover recorded at the prior short interest data release.

Cerus Corporation (CERS) will probably climb 41.4 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $9.5 price as 12-month high target. This represents a whopping 51.27 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $9, which represents a return potential of 43.31 percent when compared to the closing price of the stock of $6.28 on Tuesday, February 12. The lowest price target for the stock is $8 — slightly more than 27.39 percent from CERS’s current share price.

The stock is currently hovering around the first support level of $6.05. Below this, the next support is placed in the zone of $5.83. Till the time, the CERS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 66 on daily chart, which may remain a cause for concern. If the price breaks below $5.83 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $6.43 mark may result into a pull-back move towards $6.59 level.

On 12th of February, Cerus Corporation (NASDAQ:CERS) shares ended higher after a volatile session. The shares accumulated 0.34 points or 5.72 percent at $6.28 with a light trade volume of 1.071 million shares. After opening the session at $5.98, the shares went as high as $6.36 and as low as $5.98, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $861 million and now has 137.08 million shares outstanding. Cerus Corporation (CERS) stock has gained 11.94 percent of market value in 21 trading days.

CERS stock has a trailing 3-year beta of 1.43, 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 -$0.42 a share in the trailing twelve months. The stock’s value has surged 23.87 percent year to date (YTD) against a rise of 59.8 percent in 12 month’s time. The company’s shares still trade -21.99 percent away from its 1-year high of $8.05 and 65.26 percent up from 52-week low of $3.80. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Cerus Corporation (CERS) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry CERS operates in has an average P/E of 32.36. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 11.57 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.18. 56.6 percent is the gross profit margin for Cerus Corporation and operating margin sits at -67.7 percent. Along with this, the net profit margin is -71 percent.

Let’s take a look at some insider activity at Cerus Corporation (NASDAQ:CERS) and see the pattern. The earliest insider trade took place on 02/11/2019. Green Kevin Dennis parted with a total of 2.78 thousand shares of company at average share price of $5.86. The total for the sales was set at $16.31 thousand. After this transaction, the CFO account balance stood at 60.83 thousand shares. The stock grew 7.17 percent since that insider sale. On 01/10/2019, Green Kevin Dennis, CFO, sold 2.78 thousand shares at a price per share of $5.59. This removed 15.56 thousand shares from the insider’s fortune and the stock saw a 12.34 percent rally in value since the news became public. This transaction left 60.83 thousand shares in the CFO account.

On 12/10/2018, CFO Green Kevin Dennis performed a sale transaction worth $14.89 thousand. This sale at $5.35 each has eliminated 2.78 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 17.38 percent increase since the transaction was reported. The insider now is left with 60.83 thousand shares remaining in the account. Green Kevin Dennis, who performs the CFO job, sold 2.78 thousand shares for $15.47 thousand. The disposal occurred on 11/12/2018 was priced at $5.56 per share. The share price soared 12.95 percent since the reporting date. Green Kevin Dennis now left with a stake of 60.83 thousand CERS stock worth $381.98 thousand after the insider selling.