Formula Growth Ltd. Makes New $1.15 Million Investment in Vericel Corporation $VCEL

Key Points

• Formula Growth Ltd. acquired 25,824 Vericel shares worth approximately $1.15 million during the second quarter, representing about 0.05% of the biotechnology company.
• Vericel reported stronger-than-expected quarterly results, with EPS of $0.04 versus a $0.03 loss estimate and revenue of $77.46 million, up 22.5% year over year.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $58.40, despite shares trading down 3% to $41.18.

Formula Growth Ltd. purchased a new stake in shares of Vericel Corporation (NASDAQ:VCEL - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 25,824 shares of the biotechnology company's stock, valued at approximately $1,149,000. Formula Growth Ltd. owned about 0.05% of Vericel at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Bank of America Corp DE purchased a new position in shares of Vericel during the 2nd quarter worth approximately $45,210,000. Freestone Grove Partners LP acquired a new stake in Vericel in the 2nd quarter valued at approximately $755,000. Man Group plc purchased a new stake in Vericel in the second quarter valued at approximately $2,998,000. Jupiter Topco LLC purchased a new stake in Vericel in the second quarter valued at approximately $4,417,000. Finally, EFG International AG acquired a new position in Vericel during the second quarter worth $5,674,000.

Vericel Trading Down 3.0%

Shares of NASDAQ VCEL opened at $41.18 on Friday. The stock has a market cap of $2.11 billion, a P/E ratio of 87.62 and a beta of 1.06. The business's fifty day simple moving average is $44.89 and its 200-day simple moving average is $38.31. Vericel Corporation has a 12-month low of $28.95 and a 12-month high of $49.32.

Vericel (NASDAQ:VCEL - Get Free Report) last released its earnings results on Thursday, July 30th. The biotechnology company reported $0.04 EPS for the quarter, topping the consensus estimate of ($0.03) by $0.07. Vericel had a return on equity of 6.91% and a net margin of 7.91%.The firm had revenue of $77.46 million during the quarter, compared to analysts' expectations of $72.70 million. During the same period in the previous year, the firm posted ($0.01) EPS. Vericel's revenue for the quarter was up 22.5% on a year-over-year basis. On average, equities analysts forecast that Vericel Corporation will post 0.54 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Joseph Anthony Mara, Jr. sold 5,000 shares of the business's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $44.75, for a total transaction of $223,750.00. Following the completion of the transaction, the chief financial officer directly owned 16,009 shares of the company's stock, valued at approximately $716,402.75. The trade was a 23.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Jonathan Siegal sold 4,500 shares of the company's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $48.90, for a total transaction of $220,050.00. Following the sale, the insider owned 1,078 shares in the company, valued at $52,714.20. The trade was a 80.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 52,232 shares of company stock worth $2,304,217. 7.60% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. TD Cowen lifted their price objective on Vericel from $55.00 to $58.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Truist Financial reissued a "buy" rating and set a $58.00 target price (up from $54.00) on shares of Vericel in a research note on Friday, July 31st. HC Wainwright reiterated a "buy" rating and set a $70.00 price target on shares of Vericel in a research note on Tuesday, July 28th. Wall Street Zen raised shares of Vericel from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th. Finally, Weiss Ratings upgraded shares of Vericel from a "sell (d+)" rating to a "hold (c)" rating in a report on Friday, July 31st. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Vericel has a consensus rating of "Moderate Buy" and a consensus price target of $58.40.

About Vericel

Vericel Corporation is a biotechnology company specializing in the development, manufacturing and commercialization of cell-based therapies for patients with severe diseases and conditions. The company's expertise lies in regenerative medicine, where it harnesses the power of autologous cell processing to create products designed to restore function and promote healing in damaged tissues.

Vericel currently markets two FDA-approved therapies. MACI® (autologous cultured chondrocytes on porcine collagen membrane) is indicated for the repair of symptomatic cartilage defects of the knee in adult patients.

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