Advantage Solutions Inc. (NASDAQ:ADV) Sees Significant Growth in Short Interest

Key Points

• Short interest in Advantage Solutions rose 15.7% in April to 489,863 shares — about 4.1% of shares shorted — with a short-interest ratio of roughly 6.0 days based on average daily volume.
• Analysts have grown cautious: the consensus rating is "Reduce" (one Buy, one Hold, two Sell) with a consensus price target of $28.13 after several downgrades and lower targets.
• The stock has a market cap of about $449 million, a negative P/E (-1.96) and elevated leverage (debt-to-equity 3.00); institutional investors own roughly 49.8% and some hedge funds (e.g., JPMorgan) recently increased positions.

Advantage Solutions Inc. (NASDAQ:ADV - Get Free Report) was the recipient of a large increase in short interest in the month of April. As of April 15th, there was short interest totaling 489,863 shares, an increase of 15.7% from the March 31st total of 423,283 shares. Approximately 4.1% of the shares of the stock are short sold. Based on an average daily trading volume, of 81,342 shares, the short-interest ratio is currently 6.0 days.

Analyst Upgrades and Downgrades

Several equities analysts have commented on ADV shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Advantage Solutions in a research note on Wednesday, January 21st. Wall Street Zen cut shares of Advantage Solutions from a "strong-buy" rating to a "hold" rating in a research note on Saturday, March 7th. Canaccord Genuity Group lowered their target price on shares of Advantage Solutions from $62.50 to $37.50 and set a "buy" rating on the stock in a research note on Wednesday, March 4th. Zacks Research cut shares of Advantage Solutions from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 12th. Finally, Morgan Stanley set a $18.75 target price on shares of Advantage Solutions in a research note on Tuesday, March 3rd. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Advantage Solutions currently has a consensus rating of "Reduce" and a consensus price target of $28.13.

Hedge Funds Weigh In On Advantage Solutions

Several hedge funds have recently made changes to their positions in ADV. JPMorgan Chase & Co. boosted its holdings in shares of Advantage Solutions by 78.6% in the third quarter. JPMorgan Chase & Co. now owns 171,345 shares of the company's stock worth $262,000 after buying an additional 75,409 shares during the period. Creative Planning acquired a new position in shares of Advantage Solutions in the second quarter worth about $26,000. Contrarian Capital Management L.L.C. boosted its holdings in shares of Advantage Solutions by 5.5% in the third quarter. Contrarian Capital Management L.L.C. now owns 1,700,000 shares of the company's stock worth $2,601,000 after buying an additional 88,860 shares during the period. Citizens Financial Group Inc. RI acquired a new position in shares of Advantage Solutions in the third quarter worth about $184,000. Finally, Voleon Capital Management LP acquired a new position in shares of Advantage Solutions in the third quarter worth about $36,000. Institutional investors and hedge funds own 49.82% of the company's stock.

Advantage Solutions Stock Performance

Shares of ADV opened at $34.27 on Friday. The firm's 50 day moving average is $22.62 and its 200-day moving average is $24.04. The stock has a market capitalization of $448.94 million, a P/E ratio of -1.96 and a beta of 1.85. The company has a debt-to-equity ratio of 3.00, a current ratio of 2.25 and a quick ratio of 2.25. Advantage Solutions has a 12-month low of $12.23 and a 12-month high of $53.63.

About Advantage Solutions

Advantage Solutions is a leading sales and marketing agency that provides outsourced solutions to consumer packaged goods companies. The firm's offerings include field sales execution, retail merchandising, in-store and shopper marketing, e-commerce activation and data-driven analytics. By deploying dedicated sales teams alongside proprietary technology, Advantage Solutions helps brands optimize shelf placement, ensure compliance with promotional programs and strengthen consumer engagement.

The company's service portfolio spans field sales and marketing, retail execution, brand ambassador programs, digital and experiential promotions, and shopper insights.

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