Beauty Health (NASDAQ:SKIN) Reaches New 1-Year Low - Time to Sell?

Key Points

• Beauty Health shares hit a new 52-week low, trading as low as $10.01 before recovering to about $11.15. The stock has a consensus “Hold” rating, with analysts’ average price target at $27.50.
• Analysts have recently turned more cautious: TD Cowen cut its price target to $18 and maintained a Hold rating, while Zacks Research and Weiss Ratings also downgraded the stock.
• The company beat quarterly EPS expectations, reporting a loss of $0.40 per share versus the expected $0.50 loss, but revenue of $72.11 million fell short of estimates. Beauty Health remains unprofitable, with negative net margin and return on equity, while institutional investors own 93.26% of shares.

The Beauty Health Company (NASDAQ:SKIN - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $10.01 and last traded at $11.1470, with a volume of 10,324 shares changing hands. The stock had previously closed at $10.8120.

Analyst Ratings Changes

Several analysts have commented on the stock. TD Cowen decreased their price objective on shares of Beauty Health from $20.00 to $18.00 and set a "hold" rating for the company in a research note on Wednesday, August 12th. Zacks Research cut Beauty Health from a "strong-buy" rating to a "hold" rating in a report on Monday, July 20th. Finally, Weiss Ratings lowered shares of Beauty Health from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $27.50.

Beauty Health Stock Up 6.3%

The firm has a market cap of $1.50 billion, a PE ratio of -52.24 and a beta of 1.05. The business has a 50-day moving average price of $0.65 and a two-hundred day moving average price of $0.73. The company has a quick ratio of 1.48, a current ratio of 1.76 and a debt-to-equity ratio of 4.36.

Beauty Health (NASDAQ:SKIN - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.40) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.50) by $0.10. The business had revenue of $72.11 million during the quarter, compared to analysts' expectations of $74.45 million. Beauty Health had a negative return on equity of 47.83% and a negative net margin of 9.79%. On average, equities research analysts expect that The Beauty Health Company will post -0.16 EPS for the current year.

Institutional Investors Weigh In On Beauty Health

A number of hedge funds and other institutional investors have recently modified their holdings of SKIN. Capricorn Fund Managers Ltd purchased a new position in Beauty Health during the 1st quarter valued at about $17,270,000. Renaissance Technologies LLC lifted its holdings in shares of Beauty Health by 29.6% in the first quarter. Renaissance Technologies LLC now owns 283,791 shares of the company's stock valued at $253,000 after purchasing an additional 64,900 shares in the last quarter. Diversified Trust Co acquired a new stake in shares of Beauty Health in the first quarter valued at approximately $25,000. Finally, Bank of America Corp DE grew its position in shares of Beauty Health by 19.2% in the first quarter. Bank of America Corp DE now owns 106,242 shares of the company's stock valued at $95,000 after purchasing an additional 17,088 shares during the last quarter. 93.26% of the stock is currently owned by institutional investors and hedge funds.

Beauty Health Company Profile

BeautyHealth is a global health and beauty company focused on creating technology-enabled products and experiences for skin health. Its primary brand is Hydrafacial, which offers non-invasive skin treatments that combine cleansing, exfoliation, extraction and hydration with professional-grade devices, serums and treatment boosters.

The company also provides products and systems designed for complementary aesthetic and wellness applications, including Syndeo, a connected Hydrafacial delivery system; Keravive, a scalp-health treatment; and SkinStylus, a microneedling platform.

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