Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) dropped -17.19% in recent trade and currently has a stock-market value of $4.56B. The shares finished at $71.9, after trading as low as $70.3001 earlier in the session. It hit an intraday high Thursday at $80.64. Trading activity significantly improved as the volume at ready counter increased to 5,379,421 shares versus 942,140 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 712,312 shares. The stock is now 50.54% above against its bear-market low of $47.76 on December 13, 2017. It has retreated -35.76% since it’s 52-week high of $97.61 reached in October. Now the market price is up 41.81% on the year and up 35.02% YTD.
OLLI’s 50 day simple moving average (SMA 50) price is $89.55 and its 200-day simple moving average (SMA 200) price is $75.47. The company’s stock currently has a total float of 52.87M shares. Its weekly volatility is hovering around 5.77% and felt 4.04% volatility in price over a month. On the upside, the share price will test short term resistance at around $78.26. On a downside, the stock is likely to find some support, which begins at $67.92. The failure to get near-term support could push it to $63.94.
Separately, it has been reported that multiple insider activity took place at Ollie’s Bargain Outlet Holdings, Inc. (OLLI). President, CEO, 10% Owner Butler Mark L sold 80,000 shares for $8,612,937 in transaction occurred on 2018/12/04. After making this transaction, the President, CEO, 10% Owner owns a direct stake of 7,116,000 shares, worth $619,000,000, as per the last closing price. On 2018/11/19 Swygert John W, EVP, COO at OLLI, dumped 48,000 shares at an average price of $88.84 per share. The selling total is valued at $2,098,977.
SVP, Store Operations, Segura Omar had divested 13,000 shares through a trade on 2018/11/12. Following this activity, the insider holds 1,183,780 shares. Wall Street’s most bullish Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) analysts are predicting the share price to blow past $108 per share during the next 12 months. The current median share price forecast by them is $94.5, suggesting that the stock could increase 31.43% in that time frame. The average price target of $94.36 calls for a nearly 31.24% increase in the stock price.
It had seen a negative analyst call from RBC Capital Mkts, which downgraded the stock from Outperform to Sector Perform on November 05. Analysts at Stephens, maintained the company shares at Overweight on September 06 but switched target price from $79 to $100. Brokerage firm Morgan Stanley, looks cautious as they stick to prior recommendation of Equal-Weight, in a call on September 06. However, they did change the target price from $69 to $75. MKM Partners, reiterated their call for Neutral, on September 06. On the other hand, they had set new target price to $82 versus $80.
When looking at valuations, Ollie’s Bargain Outlet Holdings, Inc. (OLLI) has a cheap P/E of 32.49x as compared to industry average of 39.12x. Moreover, it trades for 34.35 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 5.22x price/book and 3.94x price/sales. Compared to others, Ollie’s Bargain Outlet Holdings, Inc. is in a different league with regards to profitability, having net margins of 12.9%. To put some perspective around this, the industry’s average net margin is 3.94%. OLLI’s ROE is 18.6%, which is also considerably better than the industry’s ROE of 11.93%. It’s also very liquid in the near term, with a current ratio of 2.5. The stock has a debt/capital of 0.03.