Cray Inc. (CRAY) : What’s the Story?

Cray Inc. (NASDAQ:CRAY) is an interesting player in the Technology space, with a focus on Diversified Computer Systems. The stock has been active on the tape, currently trading at $18.60, up from yesterday’s close by -3.63%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Cray Inc. (CRAY) currently trades with a market capitalization of $743.36M. That value represents a market adjusting for revenues that have been falling by -59.50% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CRAY, the company currently has $145.13M of cash on the books, which is offset by $0.00 current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-46.39M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 1.24 on a per share basis this quarter. Perhaps, that suggests something about why 77.20% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Cray Inc. recorded a 52-week high of 43.79. It is now trading 24.49 off that level. The stock is trading 20.12 its 50-day moving average by 0.82. The stock carved out a 52-week low down at 16.77.

In recent action, Cray Inc. (CRAY) has made a move of -11.64% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 64.75, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 39.05M with 9.08% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CRAY.

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