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Ulta Beauty Stock Eyes Best Day in 2 Years

Short interest has been on the rise

Managing Editor
Dec 6, 2024 at 10:32 AM
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Makeup retailer Ulta Beauty Inc (NASDAQ:ULTA) is soaring 12.1% at $441.38 at last glance, enjoying the fruits of its third-quarter earnings and revenue beat. A hiked full-year outlook is also boosting shares, which could aid in the equity’s recovery of its 19% year-to-date deficit.

Today's pop has the shares breaking above the overhead 320-day moving average for the first time since April, and toward their best daily percentage gain since May 2022. UTLA still has a way to go before nearing its March highs around $574, but it is today approaching the site of its early April bear gap.

Short interest has been on the rise, up 32.1% during the past two reporting periods. This accounts for 5.8% of the stock's total available float, meaning it would take short sellers less than three days to buy back their bearish bets.

The Sephora rival has tended to outperform volatility expectations over the past year, too. This is per its Schaeffer’s Volatility Scorecard (SVS) of 92 out of 100.

 

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