Zacks Investment Research Downgrades Overstock.com (OSTK) to Sell

Zacks Investment Research lowered shares of Overstock.com (NASDAQ:OSTK) from a hold rating to a sell rating in a report issued on Wednesday morning, Zacks.com reports.

According to Zacks, “Overstock.com, Inc. is an online closeout retailer offering discount, brand-name merchandise for sale over the Internet. Their merchandise offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories. “

Other equities research analysts have also recently issued research reports about the company. DA Davidson cut their price target on Overstock.com from $58.00 to $51.00 and set a buy rating for the company in a report on Tuesday, March 19th. They noted that the move was a valuation call. BidaskClub upgraded Overstock.com from a sell rating to a hold rating in a research report on Thursday, March 7th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the company. The company has a consensus rating of Hold and an average price target of $54.67.

NASDAQ:OSTK opened at $10.88 on Wednesday. Overstock.com has a one year low of $9.42 and a one year high of $48.00. The company has a quick ratio of 0.85, a current ratio of 0.92 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $394.74 million, a P/E ratio of -1.75 and a beta of 1.92.

Overstock.com (NASDAQ:OSTK) last posted its quarterly earnings results on Thursday, May 9th. The company reported ($1.18) EPS for the quarter, missing the consensus estimate of ($0.93) by ($0.25). Overstock.com had a negative net margin of 11.15% and a negative return on equity of 85.28%. The company had revenue of $367.73 million during the quarter, compared to analyst estimates of $360.91 million. During the same period in the prior year, the business posted ($1.74) EPS. Overstock.com’s revenue for the quarter was down 17.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Overstock.com will post -3.31 earnings per share for the current year.

In other news, Director Joseph J. Tabacco, Jr. purchased 5,000 shares of the stock in a transaction dated Wednesday, March 27th. The stock was acquired at an average cost of $18.20 per share, for a total transaction of $91,000.00. Following the completion of the transaction, the director now directly owns 56,033 shares in the company, valued at approximately $1,019,800.60. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Patrick Michael Byrne sold 500,000 shares of Overstock.com stock in a transaction on Tuesday, May 14th. The shares were sold at an average price of $13.09, for a total value of $6,545,000.00. Following the completion of the transaction, the chief executive officer now owns 1,056,690 shares of the company’s stock, valued at $13,832,072.10. The disclosure for this sale can be found here. Over the last quarter, insiders purchased 70,000 shares of company stock valued at $771,000 and sold 910,305 shares valued at $10,789,683. Corporate insiders own 19.40% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in OSTK. Morgan Stanley raised its stake in Overstock.com by 51.2% in the first quarter. Morgan Stanley now owns 3,969,573 shares of the company’s stock valued at $65,975,000 after buying an additional 1,344,499 shares in the last quarter. BlackRock Inc. increased its position in shares of Overstock.com by 8.6% during the fourth quarter. BlackRock Inc. now owns 1,619,841 shares of the company’s stock worth $22,000,000 after purchasing an additional 128,649 shares in the last quarter. State of New Jersey Common Pension Fund D acquired a new stake in shares of Overstock.com during the fourth quarter worth about $13,580,000. Vanguard Group Inc increased its position in shares of Overstock.com by 1.9% during the third quarter. Vanguard Group Inc now owns 940,524 shares of the company’s stock worth $26,052,000 after purchasing an additional 17,878 shares in the last quarter. Finally, Vanguard Group Inc. increased its position in shares of Overstock.com by 1.9% during the third quarter. Vanguard Group Inc. now owns 940,524 shares of the company’s stock worth $26,052,000 after purchasing an additional 17,878 shares in the last quarter. Hedge funds and other institutional investors own 55.81% of the company’s stock.

About Overstock.com

Overstock.com, Inc operates as an online retailer in the United States and internationally. It operates through Retail and tZERO segments. The company offers furniture; and home décor, including rugs, bedding and bath, home improvement, kitchen items, and other related products. It also operates Worldstock Fair Trade, a store that provides handcrafted products; Pet Adoptions, a free service and portal to display pets available for adoption; and Overstock Hotels, a portal that enables customers to search and book properties within its Website.

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