ODDITY Tech (NASDAQ:ODD) Stock Breaks Above 50-Day Moving Average on Disappointing Earnings

Key Points

• Shares moved above their 50-day moving average, trading as high as $21.90 before last changing hands at $19.90.
• Quarterly results were mixed: reported EPS of $0.23 missed the $0.30 consensus, while revenue of $144.98 million topped the $140.53 million estimate. A separate report cited adjusted EPS of $0.37, above consensus.
• Fourth-quarter revenue guidance was broadly in line with expectations. Analysts’ average rating was “Reduce,” with an average price target of $22.35.

ODDITY Tech Ltd. (NASDAQ:ODD - Get Free Report)'s share price passed above its fifty day moving average during trading on Wednesday following a stronger than expected earnings report. The stock has a fifty day moving average of $19.59 and traded as high as $21.90. ODDITY Tech shares last traded at $19.90, with a volume of 2,219,732 shares.

The company reported $0.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.07). ODDITY Tech had a return on equity of 2.58% and a net margin of 2.23%. The firm had revenue of $144.98 million during the quarter, compared to the consensus estimate of $140.53 million. During the same quarter in the prior year, the business posted $0.28 EPS.

Key ODDITY Tech News

Here's some of the latest news about ODD:

• Positive Sentiment: Zacks reported adjusted quarterly EPS of $0.37, above its $0.30 consensus estimate. The company also reported $22 million in adjusted EBITDA and $561 million in cash, cash equivalents and investments. Zacks Q3 earnings report
• Neutral Sentiment: Fourth-quarter revenue guidance of $135.9 million to $137.5 million was broadly in line with the $136.8 million consensus, offering no major near-term surprise. Q3 results and guidance
• Negative Sentiment: Jefferies lowered its price target to $20, close to the share price cited in the market update, suggesting limited upside in the analyst’s view. Jefferies price-target update

Wall Street Analysts Forecast Growth

ODD has been the subject of several recent analyst reports. The Goldman Sachs Group reaffirmed a "sell" rating on shares of ODDITY Tech in a research note on Wednesday. Morgan Stanley raised their target price on ODDITY Tech from $16.50 to $18.50 and gave the stock an "equal weight" rating in a research note on Thursday, October 15th. Zacks Research upgraded ODDITY Tech from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 14th. Bank of America reaffirmed an "underperform" rating on shares of ODDITY Tech in a research report on Thursday, September 10th. Finally, JPMorgan Chase & Co. initiated coverage on ODDITY Tech in a report on Monday, September 21st. They issued a "neutral" rating and a $18.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $22.35.

Insider Buying and Selling at ODDITY Tech

In related news, CFO Mann Drucker sold 7,717 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $15.09, for a total value of $116,449.53. Following the completion of the transaction, the chief financial officer directly owned 116,135 shares of the company's stock, valued at $1,752,477.15. This represents a 6.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 51,379 shares of company stock worth $765,474.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. State Street Corp boosted its position in shares of ODDITY Tech by 123.5% during the second quarter. State Street Corp now owns 836,446 shares of the company's stock valued at $12,655,000 after purchasing an additional 462,137 shares in the last quarter. Rice Hall James & Associates LLC bought a new position in ODDITY Tech in the first quarter worth $3,533,000. Landscape Capital Management L.L.C. raised its holdings in ODDITY Tech by 65.7% in the third quarter. Landscape Capital Management L.L.C. now owns 347,941 shares of the company's stock worth $6,493,000 after purchasing an additional 138,014 shares in the last quarter. Empowered Funds LLC bought a new position in ODDITY Tech in the first quarter worth $1,275,000. Finally, Sparta 24 Ltd. purchased a new position in ODDITY Tech during the first quarter valued at $1,082,000. Institutional investors own 35.88% of the company's stock.

ODDITY Tech Price Performance

The company has a debt-to-equity ratio of 2.21, a current ratio of 3.45 and a quick ratio of 2.11. The firm has a market cap of $1.15 billion, a PE ratio of 82.92 and a beta of 2.14. The firm has a 50-day simple moving average of $19.59 and a 200 day simple moving average of $17.14.

About ODDITY Tech

ODDITY Tech Ltd. is a technology-driven consumer company that develops and operates digital-first beauty and wellness brands. Its portfolio includes IL MAKIAGE, which offers makeup and skincare products, and SpoiledChild, which focuses on beauty and wellness products. The company uses data analytics, artificial intelligence and other technology to support product development, personalized recommendations and online shopping. Its brands primarily sell directly to consumers through e-commerce platforms.

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