Overstock.com Stock Surges on Blowout Earnings Beat

Coming into today, OSTK was down more than 58% year-over-year

Digital Content Manager
Feb 23, 2022 at 9:37 AM
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Overstock.com Inc (NASDAQ:OSTKstepped into the earnings confessional earlier today to announce fourth-quarter earnings of 68 cents per share -- more than double the 32 cents analysts expected. However, the company also reported its quarterly revenues fell 9% to $613 million, well below the anticipated $644 million. Nonetheless, shares are surging, last seen up 24.3% to trade at $45.29.

The brokerage bunch is yet to chime in, but has been optimistic towards Overstock.com stock. All but one of the five analysts in question call the equity a "strong buy," while the 12-month consensus target price of $108 is a whopping 140.5% premium to last night's close.

The equity has not gone unnoticed by short sellers, though. Short interest rose 76% in the most recent reporting period, and the 6.71 million shares sold short make up 15.7% of Overstock.com stock's available float, or nearly one week's worth of pent-up buying power.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), OSTK's 50-day put/call volume ratio of 0.38 sits higher than 91% of readings from the last year. This means that while calls are outnumbering puts on an absolute basis, long puts are getting picked up at a much quicker-than-usual clip. 

After the shares' recent rally attempt was stifled by the 40-day moving average, the stock yesterday hit a nearly two-year low of $35.67. Today's pop has the security moving up toward this trendline once again. Year-over-year, OSTK is down 58.6% heading into today.


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