There’s Reason For Concern Over CellaVision AB (publ)’s (STO:CEVI) Massive 29% Price Jump
Those holding CellaVision AB (publ) (STO:CEVI) shares would be relieved that the share price has rebounded 29% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 8.4% over the last year.
After such a large jump in price, CellaVision may be sending bearish signals at the moment with its price-to-earnings (or “P/E”) ratio of 32.5x, since almost half of all companies in Sweden have P/E ratios under 21x and even P/E’s lower than 13x are not unusual. However, the P/E might be high for a reason and it requires further investigation to determine if it’s…
