Avocado Stock Falls as Earnings Disappoint

The stock is trading at its lowest levels since April

Deputy Editor

Dec 23, 2022 at 1:47 PM

Avocado distributor Mission Produce Inc (NASDAQ:AVO) is down 15% to trade at $12.38 at last glance, after the company's worse-than-expected fourth-quarter results. Adjusted earnings and revenue fell short of expectations, resulting in two analysts slashing their price targets: Stephens to $15 from $20, and J.P. Morgan Securities to $14 from $17, the latter noting it could take Mission "a couple of quarters to move past some cost pressures and supply challenges."

This negative price action has AVO gapping to its lowest level since April. The shares also broke below previous support at the $14.50 level, as well as their 200-day moving average. Year-to-date, the equity is now down 20.3%.

The sharp bear notes today are interesting, because the majority of analysts are bullish toward Mission Produce stock, with four of the five in coverage carrying a "strong buy" rating, and one a tepid "hold." Plus, the 12-month consensus price target of $17.20 is a 36.7% premium to current levels.

Follow @Schaeffers

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