22nd Century Group, Inc. (XXII) : What’s the Story?

22nd Century Group, Inc. (NYSEMKT:XXII) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $0.90, up from yesterday’s close by 7.14%. 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

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. 22nd Century Group, Inc. (XXII) currently trades with a market capitalization of $81.63M. That value represents a market adjusting for revenues that have been growing by 16.10% 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 XXII, the company currently has $5.19M of cash on the books, which is offset by $635.02k current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-6.03M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.53 on a per share basis this quarter. Perhaps, that suggests something about why 4.90% 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, 22nd Century Group, Inc. recorded a 52-week high of 1.71. It is now trading 0.87 off that level. The stock is trading 1.00 its 50-day moving average by 0.16. The stock carved out a 52-week low down at 0.71.

In recent action, 22nd Century Group, Inc. (XXII) has made a move of -3.23% 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 41.26, 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 67.33M with 6.39% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of XXII.

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