Celsius (NASDAQ:CELH) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Celsius to “sell” from “hold,” while the broader analyst consensus remains “Moderate Buy,” with 19 Buy, four Hold and two Sell ratings and an average price target of $50.50.
• Celsius shares opened at $29.09, well below their 12-month high of $66.74. The stock trades at a high price-to-earnings ratio of 121.21 and below both its 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations, with earnings per share of $0.36 versus $0.41 expected and revenue of $817.93 million versus an $870.08 million estimate, although revenue increased 10.6% year over year.

Celsius (NASDAQ:CELH - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Other equities analysts have also issued research reports about the stock. Needham & Company LLC decreased their price target on shares of Celsius from $55.00 to $35.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Stifel Nicolaus set a $37.00 price objective on shares of Celsius in a report on Friday, August 7th. Zacks Research lowered shares of Celsius from a "hold" rating to a "strong sell" rating in a research report on Friday, August 7th. JPMorgan Chase & Co. reduced their target price on Celsius from $56.00 to $52.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Finally, Jefferies Financial Group restated a "buy" rating on shares of Celsius in a research report on Tuesday, May 19th. Nineteen analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $50.50.

Celsius Stock Performance

Shares of CELH opened at $29.09 on Friday. Celsius has a 12-month low of $23.56 and a 12-month high of $66.74. The company has a current ratio of 1.80, a quick ratio of 1.42 and a debt-to-equity ratio of 0.56. The company has a market cap of $7.36 billion, a PE ratio of 121.21, a price-to-earnings-growth ratio of 2.40 and a beta of 0.95. The stock has a 50-day moving average price of $29.30 and a 200-day moving average price of $35.64.

Celsius (NASDAQ:CELH - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.05). The company had revenue of $817.93 million during the quarter, compared to the consensus estimate of $870.08 million. Celsius had a return on equity of 36.52% and a net margin of 4.24%.The firm's revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter last year, the company posted $0.47 earnings per share. As a group, equities analysts forecast that Celsius will post 1.47 earnings per share for the current fiscal year.

Insider Activity at Celsius

In other Celsius news, Director Hal Kravitz acquired 8,400 shares of the business's stock in a transaction dated Friday, May 22nd. The stock was bought at an average price of $29.73 per share, with a total value of $249,732.00. Following the purchase, the director owned 227,158 shares of the company's stock, valued at approximately $6,753,407.34. This trade represents a 3.84% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO John Fieldly bought 8,475 shares of Celsius stock in a transaction that occurred on Friday, May 22nd. The shares were acquired at an average cost of $29.36 per share, for a total transaction of $248,826.00. Following the acquisition, the chief executive officer owned 937,540 shares in the company, valued at $27,526,174.40. The trade was a 0.91% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 2.33% of the company's stock.

Institutional Trading of Celsius

Several institutional investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new position in shares of Celsius in the fourth quarter worth about $140,803,000. Westfield Capital Management Co. LP bought a new stake in shares of Celsius in the 4th quarter valued at about $70,632,000. Bank of New York Mellon Corp purchased a new stake in Celsius during the 2nd quarter valued at about $43,040,000. Scopus Asset Management L.P. purchased a new stake in Celsius during the 2nd quarter valued at about $59,382,000. Finally, Clearbridge Investments LLC bought a new position in Celsius during the 4th quarter worth approximately $45,137,000. 60.95% of the stock is currently owned by hedge funds and other institutional investors.

Celsius Company Profile

Celsius Holdings, Inc is an American beverage company known for its line of fitness and energy drinks formulated to support active lifestyles. The company's flagship product, the Celsius® brand, features beverages enhanced with ingredients such as green tea extract, guarana seed extract and essential vitamins, positioned as a functional alternative to traditional energy drinks. These products are designed to deliver a blend of ingredients that support metabolism and sustained energy without high sugar content or artificial preservatives.

In addition to its core carbonated drink portfolio, Celsius has expanded its offerings to include powder mixes and non-carbonated ready-to-drink variants, catering to consumer preferences around taste, convenience and nutritional needs.

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