Yatsen Sees Unusually High Options Volume (NYSE:YSG)

Key Points

• Investors bought an unusually large number of put options — 2,996 put contracts, roughly a 2,170% increase versus the average daily volume — signalling heavy short/bearish positioning in YSG.
• Analysts rate the stock a consensus Sell (Weiss Ratings reiterated a "sell (d-)"), and the company shows weak fundamentals with negative margins and forecasted EPS of about -0.32, while the share price sits at $3.20 below its 50- and 200-day averages.
• Several hedge funds have recently built positions in Yatsen, and Yiheng Capital notably boosted its stake by 282.4% to 368,347 shares (≈$1.43M), indicating institutional interest despite the bearish signals.

Yatsen Holding Limited Sponsored ADR (NYSE:YSG - Get Free Report) was the target of some unusual options trading activity on Wednesday. Investors purchased 2,996 put options on the company. This represents an increase of approximately 2,170% compared to the average daily volume of 132 put options.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a "sell (d-)" rating on shares of Yatsen in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the company presently has a consensus rating of "Sell".

Hedge Funds Weigh In On Yatsen

Several hedge funds have recently added to or reduced their stakes in the business. Dorsey Wright & Associates acquired a new stake in shares of Yatsen during the 3rd quarter worth about $1,340,000. Envestnet Asset Management Inc. acquired a new stake in shares of Yatsen during the 3rd quarter worth about $1,805,000. Verition Fund Management LLC acquired a new stake in shares of Yatsen during the 3rd quarter worth about $755,000. Marshall Wace LLP acquired a new stake in shares of Yatsen during the 2nd quarter worth about $1,021,000. Finally, Yiheng Capital Management L.P. boosted its stake in shares of Yatsen by 282.4% during the 4th quarter. Yiheng Capital Management L.P. now owns 368,347 shares of the company's stock worth $1,433,000 after purchasing an additional 272,019 shares during the last quarter.

Yatsen Stock Performance

NYSE:YSG traded down $0.04 during mid-day trading on Wednesday, hitting $3.20. 31,934 shares of the company's stock traded hands, compared to its average volume of 123,944. The firm's 50 day simple moving average is $3.74 and its 200 day simple moving average is $5.10. Yatsen has a 1 year low of $2.87 and a 1 year high of $11.57. The company has a market cap of $299.88 million, a PE ratio of -24.58 and a beta of -1.76.

Yatsen (NYSE:YSG - Get Free Report) last posted its earnings results on Saturday, February 14th. The company reported $0.00 earnings per share for the quarter. Yatsen had a negative net margin of 1.87% and a negative return on equity of 2.65%. The firm had revenue of $197.16 million during the quarter. On average, research analysts expect that Yatsen will post -0.32 earnings per share for the current fiscal year.

Yatsen Company Profile

Yatsen Holding Limited NYSE: YSG is a Shanghai-based beauty and personal care company founded in 2016. The firm operates as a digital-first cosmetics provider, designing, developing and marketing its own brands to a primarily Chinese consumer base. Since its inception, Yatsen has focused on leveraging data analytics and social media engagement to drive product innovation and brand awareness.

The company's core portfolio includes Perfect Diary, a color-cosmetics brand offering lipsticks, eyeshadows, foundations and related accessories; Little Ondine, which specializes in nail lacquers and nail care products; Winona, a sensitive-skin skincare line; and Abby's Choice, which features targeted skincare treatments.

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