ODDITY Tech Ltd. (NASDAQ:ODD) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts maintain a cautious outlook: ODDITY Tech has a consensus “Reduce” rating, with four sell ratings and ten holds. The average 12-month price target is $27.23.
• Quarterly results beat expectations, with EPS of $0.20 versus $0.12 expected and revenue of $180.52 million versus $178.23 million. However, revenue fell 24.9% year over year, EPS declined from $0.92, and the net margin was just 2.23%.
• Recent analyst actions were mixed: Morgan Stanley and Truist raised their price targets while keeping neutral ratings, whereas Barclays cut its target to $8 and issued a sell rating. CFO Mann Drucker also sold 7,717 shares under a pre-arranged trading plan.

ODDITY Tech Ltd. (NASDAQ:ODD - Get Free Report) has earned a consensus rating of "Reduce" from the fourteen brokerages that are currently covering the company, Marketbeat.com reports. Four investment analysts have rated the stock with a sell recommendation and ten have given a hold recommendation to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $27.2273.

A number of research firms have recently weighed in on ODD. Truist Financial lifted their price target on shares of ODDITY Tech from $16.00 to $18.00 and gave the company a "hold" rating in a research report on Thursday. Citigroup reissued a "market perform" rating on shares of ODDITY Tech in a research report on Thursday. Morgan Stanley upped their target price on ODDITY Tech from $10.00 to $16.50 and gave the company an "equal weight" rating in a research report on Thursday. Barclays reduced their target price on ODDITY Tech from $13.00 to $8.00 and set an "underweight" rating on the stock in a report on Wednesday, June 3rd. Finally, Jefferies Financial Group raised their price target on ODDITY Tech from $16.00 to $18.00 and gave the stock a "hold" rating in a research report on Wednesday.

Key Headlines Impacting ODDITY Tech

Here are the key news stories impacting ODDITY Tech this week:

• Positive Sentiment: ODDITY Tech reported quarterly earnings of $0.20 per share, exceeding the $0.12 consensus estimate, while revenue of $180.52 million also came in ahead of expectations. The earnings surprise appears to be the primary catalyst behind the stock’s upward move. ODDITY Tech Shares Gap Up Following Earnings Beat
• Positive Sentiment: Jefferies Financial Group indicated that ODDITY Tech’s stock is expected to rise, adding to the bullish interpretation of the earnings results. ODDITY Tech Stock Price Expected to Rise
• Positive Sentiment: An investment analysis highlighted turnaround potential from improving customer-acquisition costs, growth at SpoiledChild, and longer-term opportunities from METHODIQ and Labs. ODDITY’s discounted, zero-coupon convertible debt may also provide financial flexibility. Oddity Tech Turnaround Potential and Discounted Debt Value Lever
• Neutral Sentiment: Morgan Stanley raised its price target from $10.00 to $16.50 but retained an Equal Weight rating, while Truist lifted its target from $16.00 to $18.00 and maintained a Hold rating. The increases suggest improved expectations, but both targets remain at or below the recent trading level.
• Neutral Sentiment: Needham reaffirmed its Hold rating, indicating that the earnings beat has not yet changed its broader view of the company.
• Negative Sentiment: Despite the earnings beat, revenue declined 24.9% year over year and quarterly earnings fell sharply from $0.92 per share in the prior-year period. The company’s net margin was only 2.23%, underscoring ongoing profitability concerns. Oddity Tech Reveals Drop in Q2 Bottom Line
• Negative Sentiment: Barclays issued a Sell rating, adding a significant bearish voice as investors assess whether the reported improvement represents a durable recovery. ODDITY Tech Receives a Sell from Barclays

Insider Transactions at ODDITY Tech

In other ODDITY Tech news, CFO Mann Drucker sold 7,717 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $15.09, for a total transaction of $116,449.53. Following the sale, the chief financial officer directly owned 116,135 shares in the company, valued at $1,752,477.15. This represents a 6.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 172,454 shares of company stock worth $2,592,610 in the last 90 days.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ODD. Wexford Capital LP bought a new stake in ODDITY Tech during the third quarter worth $40,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of ODDITY Tech by 134.8% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,134 shares of the company's stock valued at $69,000 after purchasing an additional 651 shares during the last quarter. Legal & General Group Plc bought a new position in shares of ODDITY Tech in the 2nd quarter valued at $71,000. SG Americas Securities LLC acquired a new position in shares of ODDITY Tech during the 1st quarter worth $104,000. Finally, Headlands Technologies LLC acquired a new position in shares of ODDITY Tech during the 2nd quarter worth $108,000. 35.88% of the stock is currently owned by institutional investors and hedge funds.

ODDITY Tech Price Performance

NASDAQ:ODD opened at $18.28 on Friday. ODDITY Tech has a 52 week low of $9.25 and a 52 week high of $64.23. The company has a debt-to-equity ratio of 2.21, a quick ratio of 2.86 and a current ratio of 3.45. The firm's 50-day simple moving average is $14.94 and its 200 day simple moving average is $14.23. The firm has a market cap of $1.05 billion, a price-to-earnings ratio of 76.17 and a beta of 2.38.

ODDITY Tech (NASDAQ:ODD - Get Free Report) last posted its quarterly earnings data on Wednesday, September 9th. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.08. ODDITY Tech had a net margin of 2.23% and a return on equity of 2.58%. The firm had revenue of $180.52 million during the quarter, compared to the consensus estimate of $178.23 million. During the same quarter in the previous year, the firm posted $0.92 EPS. The business's revenue for the quarter was down 24.9% compared to the same quarter last year. As a group, sell-side analysts predict that ODDITY Tech will post -0.55 earnings per share for the current year.

ODDITY Tech Company Profile

ODDITY Tech Ltd. is a technology and consumer products company focused on beauty and wellness. The company combines data science, artificial intelligence and digital commerce to develop, market and sell products directly to consumers, with an emphasis on personalized shopping experiences and digitally native brands.

ODDITY's portfolio includes IL MAKIAGE, a digitally focused makeup brand known for personalized product recommendations, and SpoiledChild, a beauty and hair-care brand. Its offerings include cosmetics, skin-care, hair-care and related beauty products sold primarily through online channels.

Founded in 2018 by Oran Holtzman and Lihi Pinto Fryman, ODDITY is headquartered in New York and operates technology and research capabilities in Tel Aviv.

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