The Beauty Health Company (NASDAQ:SKIN) Stock Short Interest Drops 94.8%

Key Points

• Short interest plunged 94.8% to 375,655 shares as of October 15, down from 7.25 million shares on September 30. About 9% of Beauty Health’s shares remain sold short, representing 14.3 days of average trading volume.
• Analysts maintain a broadly cautious view, with one Buy, six Hold, and one Sell rating; the consensus rating is Hold with an $18 price target.
• Beauty Health shares fell 3.3% to $10.52, while the company reported a quarterly loss of $0.40 per share—better than expectations—but revenue of $72.11 million missed estimates and profitability remained negative.

The Beauty Health Company (NASDAQ:SKIN - Get Free Report) saw a large drop in short interest in the month of October. As of October 15th, there was short interest totaling 375,655 shares, a drop of 94.8% from the September 30th total of 7,247,126 shares. Based on an average trading volume of 26,346 shares, the short-interest ratio is currently 14.3 days. Approximately 9.0% of the shares of the company are sold short.

Wall Street Analysts Forecast Growth

SKIN has been the topic of several research analyst reports. TD Cowen decreased their target price on shares of Beauty Health from $20.00 to $18.00 and set a "hold" rating on the stock in a research report on Wednesday, August 12th. Jefferies Financial Group reaffirmed a "hold" rating and set a $11.00 price target (up from $0.85) on shares of Beauty Health in a research note on Monday, October 19th. Zacks Research downgraded shares of Beauty Health from a "strong-buy" rating to a "hold" rating in a report on Monday, July 20th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Beauty Health in a research note on Wednesday, October 21st. Finally, Citigroup reiterated a "hold" rating on shares of Beauty Health in a research note on Thursday, October 15th. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $18.00.

Institutional Trading of Beauty Health

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Capricorn Fund Managers Ltd acquired a new stake in Beauty Health in the 1st quarter valued at about $17,270,000. Renaissance Technologies LLC boosted its stake in shares of Beauty Health by 29.6% in the 1st quarter. Renaissance Technologies LLC now owns 283,791 shares of the company's stock valued at $253,000 after buying an additional 64,900 shares during the period. Diversified Trust Co acquired a new position in shares of Beauty Health during the first quarter worth about $25,000. Finally, Bank of America Corp DE grew its position in shares of Beauty Health by 19.2% during the first quarter. Bank of America Corp DE now owns 106,242 shares of the company's stock worth $95,000 after buying an additional 17,088 shares in the last quarter. Institutional investors own 93.26% of the company's stock.

Beauty Health Trading Down 3.3%

Beauty Health stock traded down $0.36 during trading on Monday, hitting $10.52. The company's stock had a trading volume of 63,672 shares, compared to its average volume of 31,365. The stock has a market capitalization of $68.49 million, a price-to-earnings ratio of -2.39 and a beta of 1.05. The stock's fifty day moving average is $12.64 and its 200 day moving average is $17.24. Beauty Health has a 1-year low of $9.89 and a 1-year high of $34.80. The company has a debt-to-equity ratio of 4.36, a quick ratio of 1.48 and a current ratio of 1.76.

Beauty Health (NASDAQ:SKIN - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.40) EPS for the quarter, topping the consensus estimate of ($0.50) by $0.10. The firm had revenue of $72.11 million during the quarter, compared to analyst estimates of $74.45 million. Beauty Health had a negative net margin of 9.79% and a negative return on equity of 47.83%. As a group, equities research analysts predict that Beauty Health will post -3.18 EPS for the current year.

About Beauty Health

BeautyHealth is a global health and beauty company focused on providing technology, products and services for aesthetic and skincare businesses. Its flagship brand, HydraFacial, offers a non-invasive treatment platform that combines cleansing, exfoliation, extraction and hydration, with treatments delivered through proprietary devices and consumable solutions.

The company also provides professional skincare products, treatment systems and related solutions designed for use by physicians, dermatologists, aestheticians and other licensed practitioners.

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