Tupperware Stock Eyes Two-year Lows After Credit Warning

Coming into today, TUP was already nearly 67.5% lower year-on-year

Deputy Editor
Nov 2, 2022 at 9:03 AM
facebook twitter linkedin

You'd think a company like Tupperware Brands Corporation (NYSE:TUP) would be recession proof. Nevertheless, Tupperware this morning issued a warning it might be unable to comply with the covenants in its credit agreement.

According to a report from Reuters, the consumer brand said the situation raises "substantial doubt about the company's ability to continue as a going concern," and that "there can be no assurances" that its negations with lenders to amend the credit agreement would be successful. Tupperware Brands also reported third-quarter earnings and revenue that fell short of Wall Street's estimates.

In response, TUP is on track to open at its lowest level in more than two years, last seen down 30.1% at $5.40 ahead of the opening bell. Before today's losses, the stock was already down 67.5% year-on-year, and had consolidated below its 100-day moving average since late September.

While the two analysts covering TUP rate it a tepid "hold," the consensus 12-month price target of $12 is a 55% premium to last night's closing perch at $7.73. What this means is that the equity is vulnerable to bear notes that could add even more pressure on the charts. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners