ODDITY Tech (NASDAQ:ODD) Trading Down 9.5% - Should You Sell?

Key Points

• ODDITY Tech shares fell 9.5% to about $15.38, with trading volume 74% below the average daily level.
• Analysts have become more cautious: Morgan Stanley, Jefferies and Barclays cut their price targets, while the overall consensus rating is “Reduce”, despite a consensus target price of $25.39.
• The company missed quarterly EPS expectations, reporting a $0.17 loss versus an expected $0.04 loss, while revenue declined 26.2% year over year. Analysts expect a full-year loss of approximately $0.55 per share.

ODDITY Tech Ltd. (NASDAQ:ODD - Get Free Report)'s share price traded down 9.5% on Wednesday . The company traded as low as $15.48 and last traded at $15.3810. 463,031 shares traded hands during trading, a decline of 74% from the average daily volume of 1,781,543 shares. The stock had previously closed at $16.99.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on ODD shares. Morgan Stanley reduced their price target on ODDITY Tech from $16.00 to $10.00 and set an "equal weight" rating for the company in a research report on Wednesday, June 3rd. KeyCorp reiterated a "sector weight" rating on shares of ODDITY Tech in a report on Wednesday, June 3rd. Jefferies Financial Group reissued a "hold" rating and set a $10.25 price target on shares of ODDITY Tech in a research report on Tuesday, June 2nd. Barclays cut their price objective on shares of ODDITY Tech from $13.00 to $8.00 and set an "underweight" rating on the stock in a research report on Wednesday, June 3rd. Finally, Wall Street Zen downgraded shares of ODDITY Tech from a "sell" rating to a "strong sell" rating in a research note on Saturday, April 18th. Eight analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $25.39.

ODDITY Tech Stock Down 11.5%

The firm has a market capitalization of $865.89 million, a price-to-earnings ratio of 19.10 and a beta of 2.37. The company has a quick ratio of 2.86, a current ratio of 4.06 and a debt-to-equity ratio of 1.96. The company's 50 day moving average price is $13.98 and its 200 day moving average price is $18.39.

ODDITY Tech (NASDAQ:ODD - Get Free Report) last released its earnings results on Tuesday, June 2nd. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.13). ODDITY Tech had a net margin of 6.97% and a return on equity of 15.38%. The firm had revenue of $197.94 million during the quarter, compared to analyst estimates of $187.87 million. During the same period in the previous year, the company earned $0.69 earnings per share. ODDITY Tech's revenue was down 26.2% on a year-over-year basis. As a group, research analysts forecast that ODDITY Tech Ltd. will post -0.55 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ODDITY Tech news, CFO Mann Lindsay Drucker sold 109,602 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $15.09, for a total transaction of $1,653,894.18. Following the completion of the transaction, the chief financial officer directly owned 77,709 shares of the company's stock, valued at approximately $1,172,628.81. This trade represents a 58.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 128,805 shares of company stock valued at $1,932,910.

Institutional Trading of ODDITY Tech

Hedge funds and other institutional investors have recently made changes to their positions in the business. Baillie Gifford & Co. lifted its position in ODDITY Tech by 17.8% during the fourth quarter. Baillie Gifford & Co. now owns 7,122,641 shares of the company's stock valued at $286,188,000 after purchasing an additional 1,076,921 shares during the period. Morgan Stanley grew its position in ODDITY Tech by 13.9% during the 4th quarter. Morgan Stanley now owns 4,305,565 shares of the company's stock worth $172,998,000 after purchasing an additional 525,481 shares during the period. Janus Henderson Group PLC raised its stake in shares of ODDITY Tech by 115.0% during the 4th quarter. Janus Henderson Group PLC now owns 2,423,917 shares of the company's stock valued at $97,379,000 after buying an additional 1,296,551 shares during the last quarter. Granahan Investment Management LLC raised its stake in shares of ODDITY Tech by 1.1% during the 4th quarter. Granahan Investment Management LLC now owns 1,523,204 shares of the company's stock valued at $61,202,000 after buying an additional 16,747 shares during the last quarter. Finally, Ashford Capital Management Inc. lifted its holdings in shares of ODDITY Tech by 25.0% in the 4th quarter. Ashford Capital Management Inc. now owns 685,972 shares of the company's stock valued at $27,562,000 after buying an additional 137,380 shares during the period. Institutional investors and hedge funds own 35.88% of the company's stock.

ODDITY Tech Company Profile

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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