The Case for and Against CalAtlantic Group, Inc. (CAA)

CalAtlantic Group, Inc. (CAA) is an interesting player in the Industrial Goods space, with a focus on Residential Construction. The stock has been active on the tape, currently trading at $54.83, up from yesterday’s close by 1.24%. 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

No amount of research is complete without a bird’s eye view of the financial data. CalAtlantic Group, Inc. (CAA) currently trades with a market capitalization of $6.00 Billion. That value represents a market adjusting for revenues that have been falling by -9.24 % 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 CAA, the company currently has $129.07 Million of cash on the books, which is offset by $120.13 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-312.07 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.25 on a per share basis this quarter. Perhaps, that suggests something about why 2.77% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, CalAtlantic Group, Inc. recorded a 52-week high of $54.59. It is now trading -0.23999999999999% off that level. The stock is trading $43.46 its 50-day moving average by -11.37%. The stock carved out a 52-week low down at $31.99.

In recent action, CalAtlantic Group, Inc. (CAA) has made a move of +11.74% 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 18, 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 7.56% with $108.67 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CAA.

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