LL just hit a new 10-year low
The shares of Lumber Liquidators Holdings Inc (NYSE:LL) are taking a beating this morning, on a wave of bad news for the hardwood flooring concern. The company reported fourth-quarter revenue that fell short of expectations, and Chief Financial Officer (CFO) Martin Agard announced that he is leaving the company effective April 5. As a result, LL stock is down 9% at $9.26 in early trading, and touched a new 10-year low of $9.01 out of the gate.
Today's drop is just more bad luck for LL shares. The equity has been in a channel of lower lows since its 2017 peak, and is down over 60% year-over-year. LL has attempted several rebound attempts since its Jan. 3 low of $9.14, but was shot down by its 120-day moving average. The stock is now pacing for its fifth day in the red.
Analysts were already leery of Lumber Liquidators, with all nine brokerage firms giving the stock a tepid "hold" rating. The consensus 12-month price target of $11.44 is now a 23.5% premium to current levels, which could leave LL vulnerable to a round of price-target cuts.
Short sellers have already been piling on the lumber name, with short interest up 16% in the last reporting period. In fact, the 5.91 million shares sold sort now represent a whopping 21% of the stock's available float, or eight days of trading, at LL's average volume. Today, however, the shares are on the short-sale restricted list.