FuelCell Energy Inc (FCEL) Stock: Do Analysts Think You Should Sell?

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Monday, October 04, 2021 02:49 PM | InvestorsObserver Analysts

Analysts who follow FuelCell Energy Inc (FCEL) on average expect it to add 32.89% over the next twelve months. Those same analysts give the stock an average rating of Hold. That average rating earns FuelCell Energy Inc an Analyst Ranking of 1, which means it ranks higher than 1 of stocks, based on data compiled by InvestorsObserver.

See Full FCEL Report Wall Street analysts are rating FCEL a Hold today. Find out what this means to you and get the rest of the rankings on FCEL!

Why are Analyst Ratings Important?

What’s Happening With FuelCell Energy Inc Stock Today?

FuelCell Energy Inc (FCEL) Up 2.50% in Premarket Trading

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Tuesday, October 05, 2021 07:41 AM | InvestorsObserver Analysts

FuelCell Energy Inc (FCEL) is up Tuesday morning, with the stock climbing 2.50% in pre-market trading to 6.15. FCEL’s short-term technical score of 23 indicates that the stock has traded less bullishly over the last month than 77% of stocks on the market. In the Electrical Equipment & Parts industry, which ranks 87 out of 146 industries, FuelCell Energy Inc ranks higher than 19% of stocks. FuelCell Energy Inc has fallen 1.96% over the past month, closing at $6.00 on September 7. During this period of time, the stock fell as low as $5.58 and as high as $7.86. FCEL has an average analyst recommendation of Sell. The company has an average price target of $8.00.

See Full FCEL Report FCEL has an Overall Score of 36. Find out what this means to you and get the rest of the rankings on FCEL!

Important Dates for Investors in FCEL:

Interesting FCEL Put And Call Options For November 12th

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Investors in FuelCell Energy Inc (Symbol: FCEL) saw new options begin trading today, for the November 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the FCEL options chain for the new November 12th contracts and identified one put and one call contract of particular interest.

The put contract at the $6.50 strike price has a current bid of 61 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $6.50, but will also collect the premium, putting the cost basis of the shares at $5.89 (before broker commissions). To an investor already interested in purchasing shares of FCEL, that could represent an attractive alternative to paying $6.75/share today.

Because the $6.50 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 9.38% return on the cash commitment, or 79.58% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for FuelCell Energy Inc, and highlighting in green where the $6.50 strike is located relative to that history:

Turning to the calls side of the option chain, the call contract at the $7.00 strike price has a current bid of 66 cents. If an investor was to purchase shares of FCEL stock at the current price level of $6.75/share, and then sell-to-open that call contract as a “covered call,” they are committing to sell the stock at $7.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.48% if the stock gets called away at the November 12th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if FCEL shares really soar, which is why looking at the trailing twelve month trading history for FuelCell Energy Inc, as well as studying the business fundamentals becomes important. Below is a chart showing FCEL’s trailing twelve month trading history, with the $7.00 strike highlighted in red:

Considering the fact that the $7.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 9.78% boost of extra return to the investor, or 82.92% annualized, which we refer to as the YieldBoost.

Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today’s price of $6.75) to be 122%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.