Advantage Solutions (NASDAQ:ADV) Stock Price Breaks Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Advantage Solutions shares fell below their 200-day moving average, reaching $27.68 before last trading at $28.76, below the $29.92 long-term average.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with a $42.00 target price, while Wall Street Zen and Weiss Ratings issued sell assessments.
• The company reported a sharp quarterly loss of $4.85 per share versus expectations for a $0.43 loss, while revenue of $757.4 million also missed estimates; leverage remains high with a 3.77 debt-to-equity ratio.

Advantage Solutions Inc. (NASDAQ:ADV - Get Free Report) passed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $29.92 and traded as low as $27.68. Advantage Solutions shares last traded at $28.76, with a volume of 40,290 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have commented on ADV. Wall Street Zen cut shares of Advantage Solutions from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Morgan Stanley decreased their price target on shares of Advantage Solutions from $35.00 to $34.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Advantage Solutions in a report on Monday, August 3rd. Finally, Zacks Research raised shares of Advantage Solutions from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $42.00.

Advantage Solutions Price Performance

The stock has a market cap of $368.70 million, a PE ratio of -1.35 and a beta of 2.18. The business has a fifty day simple moving average of $31.32 and a two-hundred day simple moving average of $29.92. The company has a current ratio of 1.79, a quick ratio of 1.79 and a debt-to-equity ratio of 3.77.

Advantage Solutions (NASDAQ:ADV - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($4.85) earnings per share for the quarter, missing analysts' consensus estimates of ($0.43) by ($4.42). Advantage Solutions had a negative return on equity of 48.15% and a negative net margin of 7.65%. The business had revenue of $757.40 million during the quarter, compared to analysts' expectations of $887.30 million. Research analysts forecast that Advantage Solutions Inc. will post 0.24 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ADV. State Street Corp bought a new position in shares of Advantage Solutions during the 2nd quarter valued at approximately $3,913,000. Bank of New York Mellon Corp increased its holdings in Advantage Solutions by 7.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 12,187 shares of the company's stock worth $527,000 after acquiring an additional 887 shares in the last quarter. Finally, Squarepoint Ops LLC purchased a new stake in Advantage Solutions in the 2nd quarter worth approximately $456,000. Institutional investors own 49.82% of the company's stock.

Advantage Solutions Company Profile

Advantage Solutions Inc is a provider of outsourced sales and marketing services for consumer goods manufacturers, retailers and other brands. The company helps clients improve how their products are presented, promoted and sold across retail, e-commerce and other consumer channels.

Its services include retail merchandising, sales representation, brand marketing, experiential marketing, digital and omnichannel marketing, category management, analytics and business intelligence. Advantage Solutions also provides services designed to support product launches, in-store execution, shopper engagement and connections between brands and consumers.

The company serves clients primarily in the United States and Canada, working across categories such as food and beverage, consumer packaged goods, health and wellness, beauty and household products.

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