Checking the Overall Picture for The Medicines Company (MDCO)

The Medicines Company (MDCO) is an interesting player in the Healthcare space, with a focus on Drugs – Generic. The stock has been active on the tape, currently trading at $34.40, down from yesterday’s close by -1.49%. 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. The Medicines Company (MDCO) currently trades with a market capitalization of $2.49 Billion.

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 MDCO, the company currently has $202.42 Million of cash on the books, which is offset by $330.64 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-582.27 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-1.58 on a per share basis this quarter. Perhaps, that suggests something about why 65.98% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, The Medicines Company recorded a 52-week high of $55.95. It is now trading 21.55% off that level. The stock is trading $37.31 its 50-day moving average by 2.91%. The stock carved out a 52-week low down at $30.80.

In recent action, The Medicines Company (MDCO) has made a move of -9.23% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 27.12, and it’s gotten there by action that has been less 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 24.62% with $70.46 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of MDCO.

Previous articleEnvision Healthcare Corporation (EVHC): What’s the Story?
Next articleHow Does Tesaro, Inc. (TSRO) Stack Up Right Now?