Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) Sees Large Growth in Short Interest

Key Points

• Short interest jumped 55.4% in March to 943,919 shares (2.5% of shares sold short) with a days-to-cover of about 3.0, indicating elevated bearish positioning.
• Research firms are negative—Wall Street Zen cut the stock to a strong sell and Weiss reiterated a sell—but MarketBeat's consensus remains a Hold with a $2.94 price target amid mixed Buy/Hold/Sell ratings.
• Recent results were weak (Q EPS -$0.10 vs. -$0.09 expected), the company shows negative margins and ROE, and it has a small market cap (~$56.7M) and negative P/E, highlighting material financial risk.

Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH - Get Free Report) was the recipient of a large increase in short interest during the month of March. As of March 31st, there was short interest totaling 943,919 shares, an increase of 55.4% from the March 15th total of 607,264 shares. Currently, 2.5% of the company's shares are sold short. Based on an average daily volume of 315,751 shares, the days-to-cover ratio is presently 3.0 days.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SPWH. Wall Street Zen downgraded Sportsman's Warehouse from a "sell" rating to a "strong sell" rating in a research report on Sunday. Weiss Ratings restated a "sell (e+)" rating on shares of Sportsman's Warehouse in a report on Monday, December 29th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $2.94.

Institutional Investors Weigh In On Sportsman's Warehouse

Several hedge funds have recently made changes to their positions in SPWH. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Sportsman's Warehouse in the 4th quarter worth $41,000. SBI Securities Co. Ltd. lifted its holdings in shares of Sportsman's Warehouse by 158,500.0% in the 4th quarter. SBI Securities Co. Ltd. now owns 31,720 shares of the company's stock worth $46,000 after buying an additional 31,700 shares during the period. Prudential Financial Inc. purchased a new stake in shares of Sportsman's Warehouse in the 2nd quarter worth $56,000. Centiva Capital LP purchased a new stake in shares of Sportsman's Warehouse in the 3rd quarter worth $63,000. Finally, Greenwood Gearhart Inc. lifted its holdings in shares of Sportsman's Warehouse by 47.9% in the 4th quarter. Greenwood Gearhart Inc. now owns 82,682 shares of the company's stock worth $121,000 after buying an additional 26,785 shares during the period. 83.04% of the stock is currently owned by hedge funds and other institutional investors.

Sportsman's Warehouse Price Performance

SPWH opened at $1.46 on Tuesday. The business has a fifty day moving average of $1.32 and a 200 day moving average of $1.76. Sportsman's Warehouse has a 52-week low of $1.08 and a 52-week high of $4.33. The company has a quick ratio of 0.10, a current ratio of 1.36 and a debt-to-equity ratio of 0.24. The stock has a market cap of $56.65 million, a P/E ratio of -1.12 and a beta of 0.46.

Sportsman's Warehouse (NASDAQ:SPWH - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.01). Sportsman's Warehouse had a negative net margin of 4.14% and a negative return on equity of 10.30%. The business had revenue of $334.86 million for the quarter, compared to analysts' expectations of $334.89 million. As a group, sell-side analysts anticipate that Sportsman's Warehouse will post -0.65 EPS for the current year.

Sportsman's Warehouse Company Profile

Sportsman's Warehouse, Inc NASDAQ: SPWH operates as a specialty retailer of hunting, shooting, fishing, camping and related outdoor sports equipment in the United States. The company's brick-and-mortar footprint comprises over 100 retail locations across more than 20 states, complemented by an e-commerce platform that serves anglers and outdoorsmen nationwide. By focusing on core outdoor activities, Sportsman's Warehouse delivers a comprehensive shopping experience for enthusiasts of all skill levels.

The retailer's product assortment includes firearms and ammunition, archery gear, fishing tackle and boats, camping supplies, outdoor apparel and footwear, water sports equipment and pet supplies.

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