Celsius Holdings Inc. (NASDAQ:CELH) Stock is Plummeting, Here is Why

Celsius Holdings Inc. (NASDAQ:CELH) Stock is Plummeting, Here is Why


The Celsius Holdings Inc. (CELH) shares are trading at lower $11.05 and the avg recommendation for the stock is Strong Buy. The current analyst price target stands at $11.56.

To add more color to this target, the company’s high over the last year is $11.98 and the low is $3.06. Over the last 52 weeks, CELH is down -7.76% while the S&P 500 is up 0.70%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CELH reported a profit of $13.0 million. Celsius Holdings Inc. also saw revenues increase to $28.18 million. In addition, CELH has free cash flow of -$3.92 million as of 03-2020 The company’s EBITDA came in at $1.68 million which compares well with its peers.

CELH booked profit margins of -1.30%, its Return on Equity (ROE) is -2.10%, and its Return on Assets is -1.50%. All told, it is clear that, CELH needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CELH has a short ratio of 4.19 and outstanding shares of 69.28M.

Company Outlook

CELH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.8 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.01. Celsius Holdings Inc. CELH also noted assets of $94.93 million at the end of the last quarter. Investors should also keep an eye on sector updates as CELH has historically followed its peers on positive news.

All told, Celsius Holdings Inc. CELH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CELH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Celsius Holdings Inc. CELH is now commanding a market cap of 788.97M and a float of 25.69M. CELH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CELH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CELH, either long or short, and we have not been compensated for this article.