Chembio Diagnostics Inc. (CEMI): A Great Stock For Handling Current Market Conditions?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Chembio Diagnostics Inc. (NASDAQ:CEMI). The institutional investor has increased its shareholding in the Healthcare company by 56.06% to 1.06 million shares with purchase of 0.38 million shares. This fresh investment now brings its stake to 5.23% valued currently at $5.84 million. In addition, BlackRock Fund Advisors raised its holdings by 0.81 million to 1.02 million shares.

With over 2.78 million Chembio Diagnostics Inc. (CEMI) shares trading Friday and a closing price of $4.10 on the day, the dollar volume was approximately $11.41 million. The shares have shown a negative weekly performance of -19.13% and its price on 08/28/20 gained nearly 8.61%. Currently, there are 18.87M common shares owned by the public and among those 17.30M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for CEMI have a consensus price objective of $5.00. The analysts have set the share’s price value over the next 12 months at a high of $5.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Chembio Diagnostics Inc. stock is 3.00 for the next 12 months. The average price target is 18.0% above its last price level and an upside to the estimated low will see the stock gain 18.0% over that period. But an upside of 18.0% will see the stock hit the forecast high price target while mean target price for the stock is $5.00.

Insiders at the company have transacted a total of 3 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 2 of these insider trades were purchases, accounting for 40,864 shares. Insider sales of the common stock occurred on 1 occasions, with total insider shares sold totaling 8,810 shares.

The top 3 mutual fund holders in Chembio Diagnostics Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Royce Micro Cap Fund. Vanguard Total Stock Market Index owns 0.54 million shares of the company’s stock, all valued at over $3.0 million. iShares Russell 2000 ETF sold 20706.0 shares to see its total holdings shrink to 0.44 million shares valued at over $2.45 million and representing 2.19% of the shares outstanding. Royce Micro Cap Fund bought 0.11 million shares to bring its total holdings to over 0.39 million shares at a value of $2.15 million. Royce Micro Cap Fund now owns shares totaling to 1.93% of the shares outstanding.

Shares of Chembio Diagnostics Inc. (NASDAQ: CEMI) opened at $3.73, down -$0.05 from a prior closing price of $3.78. However, the script later closed the day at $4.10, up 8.61%. The company’s stock has a 5-day price change of -19.13% and -54.14% over the past three months. CEMI shares are trading -10.09% year to date (YTD), with the 12-month market performance down to -18.65% lower. It has a 12-month low price of $2.25 and touched a high of $15.89 over the same period. Currently, 2.78 million shares have been traded, compared to an average intraday trading volume of 5.73 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -22.15%, -13.21%, and -31.86% respectively.

Institutional ownership of Chembio Diagnostics Inc. (NASDAQ: CEMI) shares accounts for 43.70% of the company’s 18.87M shares outstanding. Mutual fund holders own 16.32%, while other institutional holders and individual stakeholders account for 20.03% and 16.21% respectively.

It has a market capitalization of $76.10M and a beta (3y monthly) value of 2.24. The earnings-per-share (ttm) stands at -$1.16. Price movements for the stock have been influenced by the stock’s volatility, which stands at 11.04% over the week and 9.34% over the month.

Analysts forecast that Chembio Diagnostics Inc. (CEMI) will achieve an EPS of -$0.28 for the current quarter, -$0.25 for the next quarter and -$0.57 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.35 while analysts give the company a high EPS estimate of -$0.24. Comparatively, EPS for the current quarter was -$0.22 a year ago. Earnings per share for the fiscal year are expected to decrease by -48.00%, and 53.30% over the next financial year. EPS should grow at an annualized rate of 25.00% over the next five years, compared to -46.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Chembio Diagnostics Inc. (CEMI) as a “Hold” at a consensus score of 3.00. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 4 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the CEMI, a number of firms have released research notes about the stock. The Benchmark Company stated their Hold rating for the stock in a research note on June 17, 2020, with the firm’s price target at. Craig Hallum coverage for the Chembio Diagnostics Inc. (CEMI) stock in a research note released on June 17, 2020 offered a Hold rating with a price target of. Canaccord Genuity was of a view on June 17, 2020 that the stock is Hold, while Robert W. Baird gave the stock Outperform rating on May 26, 2020, issuing a price target of $21. The Benchmark Company on their part issued Speculative Buy rating on March 04, 2020.


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