The Case for and Against Incyte Corporation (INCY)

Incyte Corporation (INCY) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $94.71, down from yesterday’s close by -0.70%. 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

Incyte Corporation (INCY) currently trades with a market capitalization of $20.13 Billion. That value represents a market adjusting for revenues that have been growing by 41.59 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$10.98 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.45 on a per share basis this quarter. Perhaps, that suggests something about why 1.35% 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, Incyte Corporation recorded a 52-week high of $153.15. It is now trading 58.44% off that level. The stock is trading $102.00 its 50-day moving average by 7.29%. The stock carved out a 52-week low down at $92.91.

In recent action, Incyte Corporation (INCY) has made a move of -4.32% 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 19.03, 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 3.92% with $209.99 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of INCY.

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