FCEL Rally Fizzles Out After Earnings, Revenue Miss

The stock could be ripe for a round of price-target cuts

Digital Content Manager
Jun 10, 2021 at 9:40 AM
facebook twitter linkedin


The shares of FuelCell Energy Inc (NASDAQ:FCEL) are off 9.8% at $10.17 this morning, dropping on a fiscal second-quarter earnings and revenue miss. The company cited dwindling service agreements and license revenue as factors for the disappointing report, while its operating expenses rose. 

FCEL has seen a dramatic rise and fall this year, surging to a Feb. 10 three-year high of $29.43, before quickly plummeting with pressure from its 30-day moving average. However, the equity looks to have staged a bounce on its 320-day moving average, putting it back above the aforementioned 30-day late in May. Today's drop has FCEL just north of this trendline, still sporting a year-over-year rise of 331.8%. 

Despite this, analysts are bearish on FCEL. Of the seven in coverage, five say "hold," and two say "sell." Meanwhile, the 12-month consensus price target of $11.96 is a 17.7% premium to current levels, which could mean some lowered price targets from the brokerage bunch. 

Short interest has been on the rise, up 24.9% in the last two reporting periods. The 45.46 million shares sold short now make up an incredible 42.2% of the stock's available float, or a little under two days at its average pace of trading. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners