Vericel (NASDAQ:VCEL) Hits New 12-Month High After Better-Than-Expected Earnings

Key Points

• Vericel shares surged about 20.6% after the earnings report, reaching a new 52-week high during trading.
• Quarterly results beat expectations: EPS was $0.27 versus $0.06 forecast, while revenue reached $85.37 million, topping estimates and rising 26.5% year over year.
• Analysts’ consensus rating is Moderate Buy, with a consensus price target of $57.20; four analysts rate the stock Buy and two rate it Hold.

Vericel Corporation (NASDAQ:VCEL - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $54.49 and last traded at $55.2960, with a volume of 170,887 shares traded. The stock had previously closed at $45.48.

The biotechnology company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.06 by $0.21. Vericel had a net margin of 7.91% and a return on equity of 6.91%. The firm had revenue of $85.37 million during the quarter, compared to analysts' expectations of $77.95 million. During the same quarter in the prior year, the business earned $0.10 earnings per share. The business's revenue for the quarter was up 26.5% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on VCEL shares. Wall Street Zen upgraded shares of Vericel from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th. Canaccord Genuity Group set a $60.00 price objective on Vericel in a report on Thursday, July 30th. HC Wainwright reaffirmed a "buy" rating and issued a $70.00 target price on shares of Vericel in a report on Tuesday, July 28th. Truist Financial dropped their target price on Vericel from $58.00 to $52.00 and set a "buy" rating for the company in a research report on Wednesday, October 14th. Finally, TD Cowen raised their price objective on shares of Vericel from $55.00 to $58.00 and gave the company a "buy" rating in a report on Friday, July 31st. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Vericel currently has a consensus rating of "Moderate Buy" and a consensus price target of $57.20.

Institutional Investors Weigh In On Vericel

Several large investors have recently modified their holdings of the company. Allspring Global Investments Holdings LLC boosted its holdings in Vericel by 0.3% during the third quarter. Allspring Global Investments Holdings LLC now owns 157,081 shares of the biotechnology company's stock worth $6,195,000 after purchasing an additional 435 shares during the last quarter. Pictet Asset Management Holding SA boosted its stake in shares of Vericel by 15.4% in the 3rd quarter. Pictet Asset Management Holding SA now owns 8,027 shares of the biotechnology company's stock worth $322,000 after buying an additional 1,071 shares during the last quarter. Alps Advisors Inc. grew its holdings in shares of Vericel by 31.7% in the third quarter. Alps Advisors Inc. now owns 67,860 shares of the biotechnology company's stock valued at $2,724,000 after acquiring an additional 16,331 shares in the last quarter. Provenance Wealth Advisors LLC purchased a new stake in shares of Vericel during the 3rd quarter valued at $242,000. Finally, Bridge City Capital LLC increased its position in shares of Vericel by 21.7% during the 3rd quarter. Bridge City Capital LLC now owns 65,161 shares of the biotechnology company's stock valued at $2,616,000 after purchasing an additional 11,627 shares during the last quarter.

Vericel Trading Up 20.6%

The stock's fifty day moving average is $40.56 and its two-hundred day moving average is $38.73. The company has a market capitalization of $2.81 billion, a PE ratio of 116.52 and a beta of 1.08.

About Vericel

Vericel Corporation is a commercial-stage biopharmaceutical company focused on developing and marketing advanced cell therapies and regenerative medicine products. The company serves orthopedic and burn-care markets, with an emphasis on treatments that use a patient's own cells or biologic materials to support tissue repair and healing.

Vericel's primary orthopedic product is MACI, an autologous cultured chondrocyte implant used to repair symptomatic cartilage defects of the knee in adults.

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