Wider-Than-Expected Quarterly Loss Sends Poshmark Stock Lower

Wedbush and Stifel adjusted their price targets

Digital Content Manager
Aug 12, 2022 at 9:09 AM
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The shares of Poshmark Inc (NASDAQ:POSH) are traveling lower today, following the digital secondhand retailer's second-quarter earnings report. The company posted losses of 29 cents per share, which was slightly wider than the 27-cent loss expected by analysts. Though its revenue topped forecasts, its third-quarter sales outlook also missed the mark, and at last check POSH was trading down 1.9% at $12.64. 

Wedbush and Stifel have both chimed in with post-earnings notes. The former cut its price target to $14 from $16, and the latter lifted its price objective to $14 from $12. The 12-month consensus price target now sits at $14.27 and is a 10.8% premium to last night's close. Meanwhile, sentiment surrounding the stock remains hesitant. Of the 13 in coverage, 11 say "hold." 

Short sellers were piling on their bearish bets ahead of Poshmark's earnings event. Short interest rose 9% in the last reporting period, and now makes up 10.4% of the stock's available float, or nearly a week's worth of pent-up buying power. 

Poshmark's options pits echo this sentiment. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day put/call volume ratio of 1.56, which sits higher than 81% of readings from the past 12 months. In other words, long puts are getting picked up at a much quicker-than-usual clip of late. 

This pessimistic sentiment isn't all that surprising. POSH still suffers a nearly 25% year-to-date deficit, despite its recent bounce off a familiar floor at the $10 level. The stock seems to have run into some technical trouble as well, with the $13.50 region acting as a consolidation level since April, while the 180-day moving average rejected the equity's pre-earnings rally. 

 

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