ODDITY Tech Ltd. (NASDAQ:ODD) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• ODDITY Tech now has a consensus broker rating of "Reduce" from 13 analysts, with three sell ratings, nine holds, and one buy; the average 1-year price target is about $31.36.
• Several firms have downgraded the stock and slashed price targets, including JPMorgan, Jefferies, and Barclays, reflecting a more cautious outlook on the company.
• The stock is facing legal overhang from multiple securities-fraud class actions, while recent financial results were mixed: Q4 earnings and revenue beat estimates, but the share price remains far below its 200-day average.

ODDITY Tech Ltd. (NASDAQ:ODD - Get Free Report) has earned a consensus rating of "Reduce" from the thirteen brokerages that are currently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, nine have given a hold rating and one has given a buy rating to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $31.3636.

ODD has been the subject of a number of research reports. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $16.00 price target (down from $59.00) on shares of ODDITY Tech in a research note on Thursday, February 26th. Zacks Research cut ODDITY Tech from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 10th. Citizens Jmp cut ODDITY Tech from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 25th. Jefferies Financial Group downgraded ODDITY Tech from a "buy" rating to a "hold" rating and lowered their price objective for the company from $64.00 to $18.00 in a research note on Wednesday, February 25th. Finally, Barclays reaffirmed an "underweight" rating and issued a $13.00 price objective (down from $40.00) on shares of ODDITY Tech in a research note on Thursday, February 26th.

Key Headlines Impacting ODDITY Tech

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

• Negative Sentiment: Multiple law firms are reminding investors about the securities-fraud class action and the May 11 lead-plaintiff deadline, keeping legal overhang front and center for ODDITY Tech Ltd. ODD Deadline: ODD Investors Have Opportunity to Lead ODDITY Tech Ltd. Securities Fraud Lawsuit
• Negative Sentiment: Hagens Berman says ODD shares “cratered” amid alleged issues tied to dislocation and an expected revenue decline, reinforcing concerns about prior business performance and the pending lawsuit. ODDITY Tech. (ODD) Shares Crater 49% Amid “Dislocation” Issue and Expected 30% Decline in Revenue; Securities Class Action Pending -- Hagens Berman
• Negative Sentiment: Additional firms, including Bronstein, Gewirtz & Grossman, the Schall Law Firm, and Berger Montague, also announced or reiterated class-action claims, adding to the legal uncertainty around ODDITY Tech. ODD Deadline: Rosen Law Firm Urges ODDITY Tech Ltd. NASDAQ: ODD Stockholders to Contact the Firm for Information About Their Rights

ODDITY Tech Stock Performance

ODD opened at $14.79 on Monday. The company's 50 day moving average is $14.16 and its 200-day moving average is $30.05. ODDITY Tech has a 1-year low of $10.80 and a 1-year high of $79.18. The company has a current ratio of 5.24, a quick ratio of 4.06 and a debt-to-equity ratio of 1.47. The company has a market cap of $851.61 million, a P/E ratio of 8.22, a PEG ratio of 1.93 and a beta of 2.58.

ODDITY Tech (NASDAQ:ODD - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.06. ODDITY Tech had a net margin of 13.68% and a return on equity of 29.84%. The company had revenue of $152.73 million for the quarter, compared to the consensus estimate of $151.11 million. During the same period last year, the company posted $0.20 EPS. The firm's quarterly revenue was up 23.8% compared to the same quarter last year. Equities research analysts predict that ODDITY Tech will post 0.64 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Mann Lindsay Drucker sold 9,604 shares of the company's stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $12.85, for a total value of $123,411.40. Following the completion of the transaction, the chief financial officer owned 49,054 shares of the company's stock, valued at $630,343.90. This represents a 16.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

Institutional Trading of ODDITY Tech

Institutional investors have recently modified their holdings of the business. Citigroup Inc. grew its stake in shares of ODDITY Tech by 220.4% in the third quarter. Citigroup Inc. now owns 228,786 shares of the company's stock worth $14,253,000 after purchasing an additional 157,374 shares during the last quarter. Bamco Inc. NY lifted its stake in shares of ODDITY Tech by 11.3% in the third quarter. Bamco Inc. NY now owns 1,376,781 shares of the company's stock worth $85,773,000 after acquiring an additional 139,348 shares during the period. Baillie Gifford & Co. lifted its stake in shares of ODDITY Tech by 17.8% in the fourth quarter. Baillie Gifford & Co. now owns 7,122,641 shares of the company's stock worth $286,188,000 after acquiring an additional 1,076,921 shares during the period. Granahan Investment Management LLC lifted its stake in shares of ODDITY Tech by 11.1% in the third quarter. Granahan Investment Management LLC now owns 1,506,457 shares of the company's stock worth $93,852,000 after acquiring an additional 151,110 shares during the period. Finally, Massachusetts Financial Services Co. MA lifted its stake in shares of ODDITY Tech by 1.7% in the third quarter. Massachusetts Financial Services Co. MA now owns 1,738,125 shares of the company's stock worth $108,285,000 after acquiring an additional 28,930 shares during the period. Institutional investors own 35.88% of the company's stock.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands.

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