The stock is looking to distance itself from its early March record lows
WeWork Inc (NYSE:WE) is up 1.2% at $5.16 ahead of the open after releasing its first-quarter results. The workspace provider shared a loss of 57 cents per share, which was slimmer than the 71 cent loss expected by analysts. This marks a sharp jump, as this time last year, WeWork posted losses of $14.34 per share. Its revenue rose 28% for the quarter to $765 million, topping analysts' expectations, as well as its prior guidance.
The stock nearly plummeted back toward its early March record low of $4.50 during yesterday's session, with long-term pressure at the 100-day moving average keeping a lid on shares. Coming into today, the stock was down 40.7% year-to-date, and 56.7% year-over-year.
It's also worth noting the stock sits right on the cusp of being "oversold," which has been indicative of a short term bounce. This is per the stock's 14-day Relative Strength Index (RSI) of 31.
Short sellers have been piling on, with short interest up 13.3% in the last two reporting periods. Now, the 47.23 million shares sold short make up 7.3% of the stock's available float, and would take over two weeks to cover at WE's average daily pace of trading.
Despite its recent lows, analysts have remained bullish. All three in coverage call WE a "strong buy." Plus, the 12-month consensus price target of $9.50 is an 83% premium to current levels.