Shares of energy drink maker Celsius Holdings (CELH) fell today, allegedly on the theory that it is being targeted by activist investors. The Fly reports that an alert from financial intelligence platform TheDeal prompted speculation of activist interest that seems to be pushing CELH stock down today. The company has struggled lately due in part to supply chain challenges, reflected in last week’s disappointing Q3 earnings report.
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What’s Happening with Celsius Stock Today?
After a day of highly volatile trading, Celsius stock closed out trading for both the day and the week in the red. Indeed, shares fell 4.72% today and have fallen 8.6% over the past five days. However, these losses pale in comparison to the fact that CELH stock has fallen 36% over the recent quarter, suggesting that the company is facing an uncertain future.
It makes sense that the combination of supply chain problems and declining revenue would create a grim outlook for CELH stock. Activist investors tend to target troubled companies that they believe can be turned around with proper guidance and structure. As the maker of popular, trendy beverages, Celsius certainly has potential if it can overcome the current supply chain difficulties.
When the company reported earnings in August 2024, it revealed an 8.8% increase in energy drink sales. That said, as TipRanks’ Vince Condarcuri reports, “This was slower than the 12.3% growth it saw in the previous period.” Celsius’ outlook has been mixed for months, and that isn’t likely to change as the year winds down. If an activist investor comes forward, though, it could help spark a turnaround for CELH stock.
Wall Street Remains Bullish on Celsius Stock
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CELH stock based on nine Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. While shares have declined 48% over the past year, the average CELH price target of $43.91 per share implies 72% upside potential.
