Disappointing Quarterly Results Haunt Casper Stock

Casper's revenue came in at a record high, however

Deputy Editor
Aug 10, 2021 at 10:54 AM
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The shares of Casper Sleep Inc (NYSE:CSPR) are down 11.1% at $6.14 this morning, opening at their lowest level since mid-January, following a downbeat second-quarter report. The company posted a wider-expected loss of 81 cents per share on a record $151.8 million in revenue, which did top expectations. Its third-quarter forecast also mostly disappointed analysts, with Casper citing inflation pressures and supply chain constraints keeping the mattress producer from meeting demand for its product. 

It's been a dismal couple of months for CSPR, which has suffered a dramatic selloff from its June 8, two-year high of $12. Pressure at the 10-day moving average has helped guide CSPR lower, too, and though the security attempted a rally back above this trendline late last month, with support from the $6.75 level, it's breached this former floor today. The year-to-date region could still hold at as a potential region of support, though CSPR now suffers a 34% year-over-year deficit. 

A shift in analyst sentiment wouldn't bode well for CPR. Of the six in coverage, four say "strong buy." Plus, the 12-month consensus price target of $10.70 is a 74% premium to current levels. 

Short interest was inching higher ahead of today's event, up 0.3% in the last reporting period. The 3.41 million shares sold short make up a solid 14.3% of Casper stock's available float, though it should be noted today's plummet has helped land the security on the Short Sale Restricted (SSR) list. 

Meanwhile, traders are dipping their toe into Casper's typically quiet options bits. So far 781 calls and 199 puts have been exchanged -- five times the intraday average. Leading the charge is the August 7.50 call, followed by the September 5 put. 

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