OSTK stock: buy or sell?
Updated on:
December 6th, 2019
1
Overstock.com, Inc. operates as an online retailer in the United States. The company operates through two segments, Direct and Partner.
Should I buy OSTK stock?
Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.None of our preferred buy setups matches with Overstock.com stock situation right now, therefore this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Overstock.com stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 5 ratings published for OSTK stock in the last month. The general sentiment of these ratings is bullish for OSTK stock, with 4 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-9 | Maxim Group | Buy | Buy |
| 2019-8-9 | Maxim Group | n/a | Buy |
| 2019-7-16 | Maxim Group | n/a | Buy |
| 2019-7-16 | DA Davidson | n/a | Buy |
| 2019-3-19 | DA Davidson | Buy | Positive |
OSTK stock analysis
Daily outlook
Overstock.com shares stepped up 1.38% to $7.36 on Dec 6th.
Shares of Overstock.com stepped up a beatiful 1.38% and closed at $7.36. Since price and SMA200d lines crossed down on September, OSTK fell $-10.24 per share (-58.18%).
Weekly outlook
Shares of Overstock.com ended this week at $7.36 and eased a fatal -3.03%. By mid November OSTK plummed a bloodcurdling -10.04% in just one week.
OSTK stock price history
OSTK IPO was on May 30th, 2002 at $13.69 per share1. Since then, OSTK stock sliced a -46.20%, with a yearly average of -2.70%.
1: Adjusted price after possible price splits or reverse-splits.
OSTK stock historical price chart
OSTK stock reached 52-week highs on September at $29.75, and all-time highs 2018-01-08 with a price of 89.8.
OSTK stock price target is $37.40
Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' OSTK stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 5 price forecasts for OSTK stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-9 | Maxim Group | Reiterates | $34.00 | $40.00 | 17.6% |
| 2019-8-9 | Maxim Group | Raises Target | $34.00 | $40.00 | 17.6% |
| 2019-7-16 | Maxim Group | Initiates | $75.00 | $34.00 | -54.7% |
| 2019-7-16 | DA Davidson | Reiterates | n/a | $48.00 | - |
| 2019-3-19 | DA Davidson | Reiterates | $51.00 | $25.00 | -51% |
| (in average) | $48.50 | $37.40 | -23.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Overstock.com reported astounding results for 2018-Q4 on March. Overstock.com skyrocketed Earnings per Share (EPS) by 71.60%, beating analysts of $-0.67. Overstock.com posted $-1.15.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q1 | - | n/a | -0.23 | n/a |
| 2017-Q2 | - | n/a | -0.29 | n/a |
| 2017-Q3 | 2017-11-08 | -0.09 | -0.03 | n/a |
| 2017-Q4 | 2018-03-15 | -0.03 | -2.71 | n/a |
| 2018-Q1 | 2018-05-08 | -0.87 | -1.74 | n/a |
| 2018-Q2 | 2018-08-09 | -0.82 | -2.2 | n/a |
| 2018-Q3 | 2018-11-08 | -0.86 | -1.55 | n/a |
| 2018-Q4 | 2019-03-18 | -0.67 | -1.15 | n/a |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Overstock.com annual sales inched a fine 4.40% to $1,821.59 M dollars from $1,744.76 marked in 2017. By contrast, its earnings margin (compared to sales) dropped to -11.31%, that is $-206.07 million.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $1,300 M | - | $89 M6.8% | - |
| 2014 | $1,497 M | 15.16% | $8.85 M0.6% | -90.00% |
| 2015 | $1,658 M | 10.74% | $2.45 M0.1% | -72.37% |
| 2016 | $1,800 M | 8.57% | $13 M0.7% | 411.94% |
| 2017 | $1,745 M | -3.07% | $-109.88 M-6.3% | -977.48% |
| 2018 | $1,822 M | 4.40% | $-206.07 M-11.3% | 87.54% |
Quarterly financial results
Overstock.com reported $452.55 M in revenues for 2018-Q4, a 2.72% up compared to previous quarter. Reported quarter earnings marked $-42.33 million with a profit margin of -9.35%. Profit margin grew a 1.52% compared to previous quarter when profit margin was -10.88%. When comparing turnover to same quarter last year, Overstock.com sales marked a lame move and remained steady a -0.82%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q1 | $432 M | - | $-5.90 M-1.4% | - |
| 2017-Q2 | $432 M | -0.10% | $-7.30 M-1.7% | 23.73% |
| 2017-Q3 | $424 M | -1.85% | $-0.79 M-0.2% | -89.23% |
| 2017-Q4 | $456 M | 7.61% | $-95.69 M-21.0% | 12,074.30% |
| 2018-Q1 | $445 M | -2.40% | $-50.91 M-11.4% | -46.80% |
| 2018-Q2 | $483 M | 8.49% | $-64.91 M-13.4% | 27.50% |
| 2018-Q3 | $441 M | -8.81% | $-47.92 M-10.9% | -26.17% |
| 2018-Q4 | $453 M | 2.72% | $-42.33 M-9.4% | -11.68% |
Overstock.com ownership
When you are planning to invest in shares of a company, it's always worth to check its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Overstock.com, 24.37% of all outstanding shares are owned by its staff.
In case of Overstock.com stock, 69.29% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for OSTK stock account 0.00%, no big difference from last month.
For a better context understanding, the following table shows ownership data compared to other related companies:
| OSTK | AMZN | EBAY | GAIA | ROST | |
|---|---|---|---|---|---|
| Market cap | $259.4 M | $868.4 B | $28.4 B | $109.4 M | $41.2 B |
| Total shares | 35.3 M | 495.8 M | 813.5 M | 13.0 M | 361.7 M |
| Float shares | 33.1 M | 417.4 M | 774.4 M | 11.0 M | 348.9 M |
| - Institutional holdings (%) | 69.3% | 57.1% | 88.0% | 86.6% | 96.0% |
| - Insider holdings (%) | 24.4% | 16.1% | 5.3% | 4.2% | 2.1% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
OSTK summary
| Friday, December 6th, 2019 | |
|---|---|
| Open | $7.28 |
| Close | $7.36 |
| Day range | $7.26 - $7.53 |
| Previous close | $7.26 |
| Session gain | 1.38% |
| Average true range | $0.39 |
| 50d mov avg | $9.59 |
| 100d mov avg | $14.22 |
| 200d mov avg | $14.48 |
| Daily pattern | lt03a |
| Weekly pattern | |
Overstock.com performance
To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Overstock.com performance to Amazon.com, eBay, Gaia, Ross Stores, Target, TJX Companies and Walmart:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| OSTKOverstock.com | -56.45% | -22.44% | -57.63% |
| AMZNAmazon.com | -4.47% | -2.91% | 7.52% |
| EBAYeBay | -13.31% | -6.37% | 21.76% |
| GAIAGaia | 24.34% | 17.25% | -27.08% |
| ROSTRoss Stores | 4.81% | 15.70% | 46.87% |
| TGTTarget | 14.50% | 45.93% | 90.25% |
| TJXTJX Companies | 7.01% | 16.22% | 34.32% |
| WMTWalmart | 4.87% | 14.00% | 31.14% |