A significant shift in the investment landscape for Vericel Corporation (NASDAQ:VCEL) has been observed, with Federated Hermes Inc. notably increasing its stake in the biotechnology firm. This strategic move highlights ongoing institutional investor confidence and active portfolio adjustments within the dynamic stock market. Such actions by major investment houses often signal underlying perceived value or growth potential within the targeted company, drawing attention from across the financial sector.
Federated Hermes Inc., according to its recent 13F filing with the Securities and Exchange Commission, expanded its ownership by 6.4% during the first quarter. This brought their total holdings to a substantial 1,193,759 shares, acquired through the purchase of an additional 71,386 shares. At the close of the most recent reporting period, Federated Hermes Inc.’s stake in Vericel represented approximately 2.38% of the company, valued at an impressive $53,266,000.
Beyond Federated Hermes, several other prominent hedge funds have also demonstrated interest in Vericel’s shares. Meeder Asset Management Inc., for instance, augmented its holdings by 8.4% in the fourth quarter, reaching 2,357 shares valued at $129,000. Similarly, Captrust Financial Advisors expanded its position by 3.4% during the same period, now holding 6,111 shares worth $336,000, underscoring a broader pattern of increasing institutional investment.
Further reinforcing this trend, Summit Investment Advisors Inc. elevated its stake by 8.6% in the fourth quarter, acquiring 5,137 shares valued at $282,000. Portside Wealth Group LLC also showed significant interest, lifting its holdings by 9.9% in the first quarter to 6,546 shares worth $292,000. Mariner LLC, another key player, boosted its stake in shares of Vericel by 7.7% in the fourth quarter, bringing their total to 9,209 shares valued at $506,000.
Research analysts have actively weighed in on Vericel’s prospects, offering varied but generally positive outlooks. Stephens reiterated an “overweight” rating with an ambitious $67.00 price target. Truist Financial, while lowering its target from $61.00 to $51.00, maintained a “buy” rating, indicating continued faith in the company’s long-term performance. However, one analyst did downgrade the stock from “hold” to “sell,” presenting a more cautious perspective.
Despite some differing opinions, market data from MarketBeat.com reveals a consensus rating of “Moderate Buy” for Vericel, with an average price target of $61.14. The stock opened at $40.66, boasting a market capitalization of $2.05 billion and a PE ratio of 1,355.79. Its recent trading activity shows a 50-day simple moving average of $41.06 and a 200-day simple moving average of $45.89, with a 12-month range between $34.87 and $63.00.
Vericel’s most recent quarterly earnings, released on Thursday, May 8th, reported an EPS of ($0.23), which missed the consensus estimate of ($0.09) by a notable ($0.14). The company’s revenue for the quarter stood at $52.60 million, also falling slightly short of analysts’ expectations of $53.86 million, indicating some short-term challenges in meeting market projections.
Despite missing the recent quarterly EPS and revenue estimates, Vericel demonstrated a 2.6% increase in revenue compared to the same period last year. In the prior year, the firm posted an EPS of ($0.08), highlighting a period of evolving financial performance. Looking ahead, equities research analysts collectively anticipate Vericel Corporation to achieve a positive EPS of 0.14 for the current fiscal year, reflecting a forecasted recovery and sustained growth trajectory for the biotechnology company.
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