The Short View: FuelCell Energy, Inc. (FCEL) With Decreasing Short Interest

Bulls have made their way to FuelCell Energy, Inc. (NASDAQ:FCEL) as short interest on FCEL stock has fallen by 905,305 shares during the most recent reporting period. The most recent short interest data has been released for the January 31st settlement date, which shows a decrease in total short interest for FCEL, to 16,596,187, a retreat of 5.17% since January 15th. Average daily volume for FuelCell Energy, Inc. at the January 31st settlement plunged to 1,351,912, as compared to 2,215,833 at the January 15th report. That brought days to cover to 12.27609, a 55.43% increase from the 7.89838 days to cover recorded at the prior short interest data release.

FuelCell Energy, Inc. (FCEL) will probably climb 277.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $3 price as 12-month high target. This represents a whopping 525 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2, which represents a return potential of 316.67 percent when compared to the closing price of the stock of $0.48 on Wednesday, February 13. The lowest price target for the stock is $0.55 — slightly more than 14.58 percent from FCEL’s current share price.

The stock is currently hovering around the first support level of $0.44. Below this, the next support is placed in the zone of $0.41. Till the time, the FCEL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.03 on daily chart, which may remain a cause for concern. If the price breaks below $0.41 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.5 mark may result into a pull-back move towards $0.53 level.

On 13th of February, FuelCell Energy, Inc. (NASDAQ:FCEL) shares ended higher after a volatile session. The shares accumulated 0.04 points or 9.82 percent at $0.48 with a light trade volume of 1.471 million shares. After opening the session at $0.43, the shares went as high as $0.49 and as low as $0.43, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $51.91 million and now has 107.42 million shares outstanding. FuelCell Energy, Inc. (FCEL) stock has lost -11.05 percent of market value in 21 trading days.

FCEL stock has a trailing 3-year beta of 1.45, 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 -$0.76 a share in the trailing twelve months. The stock’s value has fallen -12.23 percent year to date (YTD) against a decline of -72.7 percent in 12 month’s time. The company’s shares still trade -77.1 percent away from its 1-year high of $2.11 and 12.37 percent up from 52-week low of $0.43. The average consensus rating on the company is 2, 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 FuelCell Energy, Inc. (FCEL) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry FCEL operates in has an average P/E of 24.4. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.58 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.09. 3.5 percent is the gross profit margin for FuelCell Energy, Inc. and operating margin sits at -49.9 percent. Along with this, the net profit margin is -69.5 percent.

Let’s take a look at some insider activity at FuelCell Energy, Inc. (NASDAQ:FCEL) and see the pattern. The earliest insider trade took place on 11/20/2018. Rolls John A parted with a total of 100 thousand shares of company at average share price of $0.71. The total for the sales was set at $71 thousand. After this transaction, the Director account balance stood at 317.27 thousand shares. The stock lost -32.39 percent since that insider sale. On 11/20/2018, Rolls John A, Director, purchased 100 thousand shares at a price per share of $0.75. This added 75 thousand shares to the insider’s fortune and the stock saw a -36 percent retreat in value since the news became public. This transaction left 317.27 thousand shares in the Director account.

On 06/27/2018, Chairman Rolls John A performed a purchase transaction worth $199.12 thousand. This purchase at $1.31 each has added 152 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -63.36 percent decrease since the transaction was reported. The insider now is left with 317.27 thousand shares remaining in the account. Rolls John A, who performs the Chairman job, bought 8.33 thousand shares for $101 thousand. The acquisition occurred on 06/30/2015 was priced at $12.12 per share. The share price plunged -96.04 percent since the reporting date. Rolls John A now left with a stake of 100.67 thousand FCEL stock worth $48.32 thousand after the insider buying.