Overstock.com (NASDAQ:OSTK) Shares Gap Down After Earnings Miss

Shares of Overstock.com Inc (NASDAQ:OSTK) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $6.60, but opened at $7.78. Overstock.com shares last traded at $8.28, with a volume of 95,400 shares trading hands.

The company reported ($0.87) earnings per share for the quarter, missing the consensus estimate of ($0.62) by ($0.25). The firm had revenue of $347.10 million during the quarter, compared to the consensus estimate of $376.21 million. Overstock.com had a negative return on equity of 66.84% and a negative net margin of 9.43%. The company’s quarterly revenue was down 21.2% on a year-over-year basis. During the same period in the prior year, the company posted ($1.55) EPS.

Several research analysts recently weighed in on the stock. DA Davidson dropped their target price on shares of Overstock.com to $25.00 and set a “buy” rating for the company in a report on Wednesday. Zacks Investment Research raised shares of Overstock.com from a “hold” rating to a “buy” rating and set a $12.00 target price for the company in a report on Wednesday, October 30th. BidaskClub downgraded shares of Overstock.com from a “hold” rating to a “sell” rating in a report on Tuesday, November 5th. ValuEngine raised shares of Overstock.com from a “hold” rating to a “buy” rating in a report on Saturday, August 10th. Finally, Maxim Group set a $40.00 target price on shares of Overstock.com and gave the stock a “buy” rating in a report on Monday, August 26th. One analyst has rated the stock with a sell rating and four have issued a buy rating to the company’s stock. Overstock.com has a consensus rating of “Buy” and a consensus target price of $25.67.

In related news, CEO Jonathan E. Johnson III purchased 2,000 shares of the firm’s stock in a transaction on Friday, August 30th. The shares were acquired at an average price of $15.98 per share, for a total transaction of $31,960.00. Following the purchase, the chief executive officer now directly owns 45,494 shares in the company, valued at $726,994.12. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider John Paul Knab sold 1,500 shares of the business’s stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $21.06, for a total transaction of $31,590.00. Following the completion of the sale, the insider now owns 14,612 shares in the company, valued at approximately $307,728.72. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,563,313 shares of company stock worth $50,148,657. Corporate insiders own 19.40% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the business. Morgan Stanley lifted its stake in Overstock.com by 5.6% in the 2nd quarter. Morgan Stanley now owns 4,192,384 shares of the company’s stock worth $57,017,000 after purchasing an additional 222,811 shares in the last quarter. BlackRock Inc. lifted its stake in Overstock.com by 17.5% in the 2nd quarter. BlackRock Inc. now owns 1,855,395 shares of the company’s stock worth $25,234,000 after purchasing an additional 275,844 shares in the last quarter. Vanguard Group Inc. lifted its stake in Overstock.com by 30.0% in the 2nd quarter. Vanguard Group Inc. now owns 1,513,402 shares of the company’s stock worth $20,583,000 after purchasing an additional 348,893 shares in the last quarter. Lee Danner & Bass Inc. lifted its stake in Overstock.com by 2.4% in the 2nd quarter. Lee Danner & Bass Inc. now owns 513,929 shares of the company’s stock worth $6,989,000 after purchasing an additional 12,284 shares in the last quarter. Finally, CSat Investment Advisory L.P. lifted its stake in Overstock.com by 63.6% in the 2nd quarter. CSat Investment Advisory L.P. now owns 389,968 shares of the company’s stock worth $5,304,000 after purchasing an additional 151,552 shares in the last quarter. Institutional investors and hedge funds own 53.76% of the company’s stock.

The firm’s 50-day moving average price is $10.64 and its 200-day moving average price is $14.26. The company has a current ratio of 0.88, a quick ratio of 0.82 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $342.30 million, a PE ratio of -1.31 and a beta of 2.37.

About Overstock.com (NASDAQ:OSTK)

Overstock.com, Inc operates as an online retailer in the United States and internationally. It operates through Retail and tZERO segments. The company offers furniture; and home décor, including rugs, bedding and bath, home improvement, kitchen items, and other related products. It also operates Worldstock Fair Trade, a store that provides handcrafted products; Pet Adoptions, a free service and portal to display pets available for adoption; and Overstock Hotels, a portal that enables customers to search and book properties within its Website.

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