Shares of Celsius Holdings Inc (NASDAQ:CELH) surged to a new 52-week high Monday afternoon, continuing a rally ignited by the company’s impressive second-quarter financial results reported last week.
The beverage company saw its stock climb after multiple Wall Street analysts raised their price targets in response to the strong earnings beat and robust growth outlook.
What To Know: Last week, Celsius reported second-quarter adjusted earnings of 47 cents per share, beating the analyst consensus estimate of 23 cents. Quarterly revenue soared 84% year-over-year to $739.26 million, also surpassing Street expectations.
This significant sales increase was primarily fueled by $301.2 million in revenue from the newly acquired Alani Nu brand. The core Celsius brand also contributed to the positive results with 9% year-over-year revenue growth. The company’s adjusted EBITDA more than doubled from the prior-year period to $210.3 million.
Following the report, analysts showed increased confidence in the stock. On Friday, firms including Truist Securities, Maxim Group, Citigroup and UBS all raised their price targets while maintaining Buy ratings. Truist increased its target to $65 from $55 and Morgan Stanley lifted its target to $56 from $42.
CEO John Fieldly stated, “We believe modern energy is one of the most exciting growth opportunities in beverages today, and Celsius Holdings is defining the category’s future”.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Celsius demonstrates exceptional strength in several key areas. The stock boasts a Momentum score of 94.56, a Growth score of 86.64 and a Quality score of 86.88. These high ratings indicate that the company has strong price momentum, robust business growth and sound financial health.
However, its Value score is a low 12.18, suggesting that the stock is currently trading at a premium valuation and may be considered expensive compared to its peers or intrinsic financial metrics.
CELH Price Action: According to data from Benzinga Pro, Celsius Holdings shares closed Monday up 3.95% to $54. The stock has a 52-week high of $54.49 and a 52-week low of $21.10.
How To Buy CELH Stock
By now, you're likely curious about how to participate in the market for Celsius Holdings — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Celsius Holdings, which is trading at $54.16 at time of writing the article, $100 would buy you 1.85 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.
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