Celsius Holdings Stock Is Surging Thursday: What's Going On?

Celsius Holdings Inc CELH shares are trading higher Thursday, bouncing back from steep losses in recent quarters. Here’s a look at what’s going on.

What To Know: Celsius shares are moving swiftly higher Thursday on increased attention from retail traders. The stock was trending across several social sites at last check. It was the top trending name on Stocktwits and was among the most mentioned stocks on Reddit’s r/WallStreetBets over the past 24 hours.

Traders appear to be pointing to a confluence of bullish indicators including support levels dating back to 2022 and an oversold relative strength index (RSI). Traders are also highlighting notable short interest as potential fuel for a sharp bounce. 11.79% of Celsius’ float is currently sold short, according to Benzinga Pro.

A spike in options volume suggests traders are betting on a continued bounce. Thursday’s options volume was around 252,919 at the time of writing versus Celsius’ 30-day average options volume of 57,335, per Barchart data.

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Celsius shares hit new 52-week lows this week. The stock has been under pressure as the company has battled market share declines on the back of softer demand. Celsius was experiencing sales growth of more than 50% at the start of the year, but growth has reportedly fallen to around 10% in the current quarter.

The selloff in Celsius shares accelerated last month after the company said distribution partner PepsiCo was scaling back orders by about $100 million to right-size its inventory.

Following Celsius’ second-quarter earnings in August, several analysts lowered price targets on the stock. Last week, BofA Securities analyst Jonathan Keypour downgraded Celsius citing a sharp sequential decline in sales. The analyst lowered earnings estimates moving forward and noted that he doesn’t expect a meaningful recovery until mid-2025.

Celsius is due to report quarterly results at the beginning of November. Analysts currently expect the company to report earnings of 5 cents per share and revenue of $273.751 million, according to Benzinga Pro.

CELH Price Action: Celsius shares were up 12.8% at $34.40 at the time of publication, according to Benzinga Pro.

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