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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
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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. 

 

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