Rent the Runway, Inc. (NASDAQ:RENT) Short Interest Up 14.6% in April

Key Points

• Short interest up 14.6% — short interest rose to 1,065,485 shares as of April 15 (about 3.5% of shares outstanding) with a days-to-cover ratio of 7.6.
• Quarterly results topped expectations — Rent the Runway reported EPS of ($0.04) vs. consensus ($3.97) and revenue of $91.7 million vs. $76.6 million expected.
• Analyst sentiment remains negative despite the beat, with an average rating of "Sell"; the stock trades near the low end of its one-year range (current price ~$4.66, one-year low/high $3.69/$10.13) and a market cap of ~$156 million.

Rent the Runway, Inc. (NASDAQ:RENT - Get Free Report) saw a large growth in short interest in the month of April. As of April 15th, there was short interest totaling 1,065,485 shares, a growth of 14.6% from the March 31st total of 929,559 shares. Based on an average daily volume of 140,434 shares, the days-to-cover ratio is currently 7.6 days. Approximately 3.5% of the company's shares are sold short.

Hedge Funds Weigh In On Rent the Runway

Institutional investors have recently bought and sold shares of the business. Marshall Wace LLP purchased a new position in Rent the Runway during the fourth quarter valued at approximately $84,000. Romano Brothers AND Company purchased a new position in Rent the Runway during the fourth quarter valued at approximately $87,000. Virtu Financial LLC purchased a new position in Rent the Runway during the fourth quarter valued at approximately $88,000. Renaissance Technologies LLC purchased a new position in Rent the Runway during the fourth quarter valued at approximately $89,000. Finally, OMERS ADMINISTRATION Corp purchased a new position in Rent the Runway during the fourth quarter valued at approximately $92,000. 73.10% of the stock is owned by hedge funds and other institutional investors.

Rent the Runway Stock Performance

Shares of NASDAQ:RENT opened at $4.66 on Friday. The firm has a market cap of $155.73 million, a PE ratio of 9.71 and a beta of 1.33. The firm's 50 day simple moving average is $5.10 and its 200-day simple moving average is $5.82. Rent the Runway has a one year low of $3.69 and a one year high of $10.13.

Rent the Runway (NASDAQ:RENT - Get Free Report) last issued its earnings results on Tuesday, April 14th. The company reported ($0.04) EPS for the quarter, topping analysts' consensus estimates of ($3.97) by $3.93. The company had revenue of $91.70 million for the quarter, compared to analysts' expectations of $76.60 million.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Rent the Runway in a research report on Friday, March 27th. Wall Street Zen lowered shares of Rent the Runway from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat, Rent the Runway presently has an average rating of "Sell".

Rent the Runway Company Profile

Rent the Runway NASDAQ: RENT operates an online marketplace and subscription service that provides designer apparel and accessory rentals to consumers. The company offers both one-time rentals and tiered subscription plans, enabling members to borrow items on a recurring basis rather than purchasing them outright. Rent the Runway's inventory spans a wide range of brands and styles, including evening gowns, everyday wear, handbags and jewelry, positioning the company within the broader sharing-economy and circular-fashion movements.

Founded in 2009 by Jennifer Hyman and Jennifer Fleiss, Rent the Runway was built on the premise of making high-end fashion more accessible and sustainable.

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