Overstock.com, Inc. (NASDAQ:OSTK) is one of the stocks that are taking the center stage today as the company shares are trading 14.3% or 3.57 points lower from last closing price of $24.97, reaching $21.4 at last check. So what’s going on with OSTK shares anyway? The price has dropped in 3 of the last 5 days and is up 100.88% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -402,607 shares, and in total 5.216 million shares valued at $111.62 million were seen changing hands compared with 5.619 million shares valued at $140.294 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the OSTK stock is near its bottom.
Overstock.com, Inc. (OSTK) shares have notched a 3-month gain of about 100.88%, but has still advanced 83.87% year to date. By comparison, the stock sank -35.31% over the past 12 months, while it jumped 31.35% over the 1 month. The company’s market cap is around $744.36M, with its short interest ratio standing at 3.81%.
In the current trading session for OSTK, the stock witnessed two major price actions, it rose to a high of $24.29 and was down as much as $20.05 at one point. The high recorded is very low when compared to their 52-week high which is $8.96. The 52-week high is now at -49.93 distance from current price. Their recent low of $42.2 represents a 135.83% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for OSTK is $41, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Overstock.com, Inc. earned $-6.19 per share in the trailing 12 months and has a P/E ratio of -3.46. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 40.18 and lower compared to the sector’s average of 15.87. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. OSTK also has P/S multiple of 0.37. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 6.07x.
The company recorded an interesting insider sale transaction by the VP on Aug 06, 2019. A Securities and Exchanges Commission filings show that Eric Glen Nickle sold a total of 100 OSTK shares that day for a sum of around $2,191. The filings show that the insider now retains 3,991 shares, currently worth $85,407. Overstock.com, Inc. (OSTK) insiders have acquired 40,000 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 407,751 shares. In total, individual insiders traded 447,751 shares in the business, which makes up 25.256% of 1,772,835 shares that were traded over a year. In the past 12 months, insiders have purchased 45,000 shares while the seller parted with 1,727,835 shares.
OSTK‘s last price was up 28.49% as compared to the average trading price of 50 days recorded at $16.65 while enlarging the period to 200 trading days, the average closing price was $15.97. At present, there are 29.81 million in the total number of common shares owned by the public and among those 28.26 million shares have been available to trade. The percentage of shares being held by the company management was 4.2% while institutions stake was 66.9%. The company has generated negative returns on equity over the last 12 months (-146.9%). It managed to keep its gross profit margin at 19.1% over the past 12 months.
When assessing the full upside of the OSTK stock, there is another set of technicals that should be looked into and considered. Its 1.95% gain from moving average of $20.99 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 2.42 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Overstock.com, Inc. — 3 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $44 on shares of Overstock.com, Inc. (NASDAQ:OSTK), which corresponds to 106.09% upside potential than its current market price of $21.4 and implies potential despite the recent drop in the price. However, their current target price has fallen from $63 a month ago and is down handily from the consensus target of $63 a quarter ago.
In the last five years, the EPS of the company has been roughly -31.7%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 5%. The revenue of the company has risen at an average annualized rate of about 6.9 over the last five years. The company recently recorded a drop of -17.4%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards OSTK stock. Swift Run Capital Management LLC trimmed position in the company after it dumped -7.7% or 13,662 shares of its common stock. The hedge fund now owns 12,610 shares worth $269,854, SEC documents show. Northern Trust Corp shored up assets in the stock as 301253.8 shares have been purchased, increasing its stake by 6.4% to 320,534 shares which are currently valued at $6,859,428. In addition, Bank of New York Mellon Corp recently reported that it now owns 113,010 shares making a total of $2,418,414 based on the recent price. This refelects a change of 17.1% in their ownership.