Are Short-Sellers Right About Guardant Health, Inc. (GH)?

Bears have made their way to Guardant Health, Inc. (NASDAQ:GH) as short interest on GH stock has climbed by 437,644 shares during the most recent reporting period. The most recent short interest data has been released for the February 28th settlement date, which shows a increase in total short interest for GH, to 2,598,104, a surge of 20.26% since February 15th. Average daily volume for Guardant Health, Inc. at the February 28th settlement jumped to 540,548, as compared to 369,666 at the February 15th report. That brought days to cover to 4.806426, a 17.76% decrease from the 5.844357 days to cover recorded at the prior short interest data release.

Guardant Health, Inc. (GH) will probably climb -47.86 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $85-month high price target. This represents a whopping -10.01 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $82, which represents a return potential of -13.18 percent when compared to the closing price of the stock of $94.45 on Wednesday, March 13. The lowest price target for the stock is $40 — slightly more than -57.65 percent from GH’s current share price.

The stock is currently hovering around the first support level of $82.56. Below this, the next support is placed in the zone of $70.66. Till the time, the GH stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 85.92 on daily chart, which may remain a cause for concern. If the price breaks below $70.66 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $102.3 mark may result into a pull-back move towards $110.14 level.

On 13th of March, Guardant Health, Inc. (NASDAQ:GH) shares ended higher after a volatile session. The shares accumulated 20.45 points or 27.64 percent at $94.45 with a light trade volume of 3.702 million shares. After opening the session at $78.95, the shares went as high as $98.25 and as low as $78.51, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $8.07 billion and now has 85.47 million shares outstanding. Guardant Health, Inc. (GH) stock has gained 127.97 percent of market value in 21 trading days.

GH stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$6.16 a share in the trailing twelve months. The stock’s value has surged 151.26 percent year to date (YTD) against a decline of 0 percent in 12 month’s time. The company’s shares still trade 26.24 percent away from its 1-year high of $74.82 and 249.3 percent up from 52-week low of $27.04. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Guardant Health, Inc. (GH) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry GH operates in has an average P/E of 87.3. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 103.8 on the Price-to-Sales ratio. Compare this with the industry average P/S of 47. 0 percent is the gross profit margin for Guardant Health, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Guardant Health, Inc. (NASDAQ:GH) and see the pattern.