Rocketing to a price of $5.21 during today's afternoon trading session, shares of Cano Health are still -44.51% below their average target price of $9.38. Could there be more upside potential for the stock? Analysts are giving CANO an average rating of buy and target prices ranging from $4 to $14 dollars per share.
We can infer that market sentiment is more pessimistic on Cano Health because its short interest -- meaning the percentage of its shares that are being shorted on an expectation of a price decline -- is quite high at 17.6%. The float includes only shares that are available for public trading, and excludes preferred shares held by insiders.
When a stock is sold short, it means an investor has borrowed shares of the stock from their broker, and then sold them at the going market price. The investor hopes for the price to decline, so that they might buy those shares back at a lower price in the future. Once they do, they can return the borrowed shares to their broker, and keep the profit they made on the transaction.
Another way to gauge the sentiment on Cano Health is to look at the percentage of institutions that are invested in the stock. In this case, 73.5% of the shares are held by pension, mutual, and hedge funds, which shows that these institutions probably have strong confidence in the stock.
Institutions have vast resources. If institutions are invested in a particular stock, it shows in most cases that they have performed extensive research and concluded that it is a good investment. In some cases, however, increases in institutional ownership could be a sign of a takeover attempt or proxy fight, which can actually injure share prices. Also, institutions are not infallible, and can certainly make miscalculations -- often with spectacular results.
Reviewing the analyst coverage of a stock as well its short and institutional ownership percentages gives a glimpse of what the current market sentiment is on Cano Health. Warren Buffett famously said that in the short term, markets are voting mechanisms, but in the long term, they are weighing mechanisms. This means that long term investors should be aware of a stock's fundamentals before committing, and only think about how the market is currently "voting" on a given stock.
At a glance, here are some essential statistics you may want to know about CANO:
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It has a trailing 12 month price to earnings (Eps) of $-0.67 per share
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Cano Health has a trailing 12 month Price to Earnings (P/E) ratio of -7.8 while the S&P 500 average is 15.97
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The company has a Price to Book (P/B) ratio of 2.7 in contrast to the S&P 500's average ratio of 2.95
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Cano Health is a Healthcare company, and the sector average P/E and P/B ratios are 15.91 and 4.12 respectively
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