CarParts.com (NASDAQ:PRTS) Stock Price Crosses Below Two Hundred Day Moving Average - Here's Why

Key Points

• CarParts.com shares fell below their 200-day moving average, trading as low as $6.50 before closing at $6.90, below the $7.08 average. Analysts’ consensus rating is “Reduce,” with an average price target of $7.00.
• The company’s latest quarter exceeded expectations, reporting a loss of $0.53 per share versus the estimated $0.84 loss and revenue of $129.33 million versus the $124.04 million consensus. However, CarParts.com remains unprofitable, with a negative net margin and return on equity.
• Company insiders bought shares worth roughly $2.0 million during the last quarter, including significant purchases by the CEO and COO. Institutional investors own 75.3% of the stock, while Bank of America increased its stake by 249.6%.

CarParts.com, Inc. (NASDAQ:PRTS - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $7.08 and traded as low as $6.50. CarParts.com shares last traded at $6.90, with a volume of 135,533 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on PRTS shares. Weiss Ratings raised shares of CarParts.com from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday. Wall Street Zen raised CarParts.com to a "hold" rating in a research report on Saturday, October 3rd. Finally, Royal Bank Of Canada upped their price target on CarParts.com from $6.70 to $7.00 and gave the stock a "sector perform" rating in a research note on Friday. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $7.00.

CarParts.com Stock Performance

The company has a market cap of $55.68 million, a price-to-earnings ratio of -2.33 and a beta of 0.68. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.67 and a quick ratio of 0.66. The firm has a fifty day simple moving average of $8.17 and a 200 day simple moving average of $7.08.

CarParts.com (NASDAQ:PRTS - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The specialty retailer reported ($0.53) earnings per share for the quarter, topping analysts' consensus estimates of ($0.84) by $0.31. CarParts.com had a negative net margin of 4.03% and a negative return on equity of 36.78%. The business had revenue of $129.33 million during the quarter, compared to analysts' expectations of $124.04 million.

Insiders Place Their Bets

In other news, COO Michael Huffaker bought 36,580 shares of the business's stock in a transaction on Wednesday, September 9th. The stock was purchased at an average price of $9.64 per share, with a total value of $352,631.20. Following the transaction, the chief operating officer directly owned 139,560 shares in the company, valued at approximately $1,345,358.40. The trade was a 35.52% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO David Meniane purchased 36,643 shares of the stock in a transaction dated Wednesday, September 9th. The stock was acquired at an average cost of $9.64 per share, for a total transaction of $353,238.52. Following the completion of the transaction, the chief executive officer owned 299,414 shares of the company's stock, valued at $2,886,350.96. The trade was a 13.94% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 219,823 shares of company stock valued at $2,000,649 in the last quarter. Insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in CarParts.com stock. Bank of America Corp DE raised its holdings in shares of CarParts.com, Inc. (NASDAQ:PRTS - Free Report) by 249.6% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 70,094 shares of the specialty retailer's stock after buying an additional 50,045 shares during the quarter. Bank of America Corp DE owned about 0.09% of CarParts.com worth $55,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 75.30% of the company's stock.

About CarParts.com

CarParts.com, Inc is an e-commerce retailer specializing in replacement and aftermarket automotive parts and accessories. Through its online platform, the company serves owners, do-it-yourself customers, professional installers and collision-repair businesses seeking parts for cars, trucks and sport utility vehicles.

Its product offerings include collision and body components such as bumpers, fenders, hoods, mirrors and lighting, as well as mechanical parts for braking, suspension, steering, engine, transmission, exhaust and cooling systems.

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