Jefferies downgraded WSM to "underperform" from "hold"
The shares of Williams-Sonoma Inc (NYSE:WSM) are down 5.6% at $110.95 at last glance, after Jefferies issued a scathing research note. The firm downgraded WSM to "underperform" from "hold," with a price-target cut to $100 from $160, calling Williams-Sonoma a "poster child" for retailers that over-earned during Covid and noting deteriorating demand that should worsen into 2023.
The majority of analysts are bearish toward WSM, too. In fact, of the 23 covering brokerages, 16 currently carry a "hold" or worse rating.
On the charts, Williams-Sonoma stock has pulled back from its August highs around $170 -- now trading at its lowest level since the start of July. Down 33.5% year-to-date, the equity just last week dropped below support at the $117 level, with pressure from its descending 20-day moving average.
Though short interest has crept lower, it still represents 10% of the stock's available float. It would take over 11 days to buy back these bearish bets, at WSM's average pace of trading.