How Should Investors View Poshmark Inc. (POSH) Insider Trading?

As of Friday close, Poshmark Inc.’s (NASDAQ:POSH) stock was up $2.32, moving up 23.87 percent to $12.04. The average number of shares traded per day over the past five days has been 2,201,560 shares. 2 times new highs have been achieved over the past 5 days, with a $0.85 gain in that time frame. In the last twenty days, the average volume was 1,339,205, while in the previous 50 days, it was 1,274,654.

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Since last month, POSH stock retreated -3.37%. Shares of the company fell to $8.97 on 05/12/22, the lowest level in the past month. A 52-week high of $52.39 was reached on 01/03/22 after having rallying from a 52-week low of $8.97. Since the beginning of this year, POSH’s stock price has dropped by -29.30% or -$4.99, and marked a new high 1 time. However, the stock has declined by -77.02% since its 52-week high.

Poshmark Inc. (POSH) last reported insider trading activity 40 days ago on Apr 04. McDonald John Michael, the Chief Operating Officer of the company, disposed of 3,162 shares for $12.69 on Apr 04. It resulted in a $40,132 divestment by the insider. Chandra Manish sold 2,109 shares at an average price of $12.69 on Apr 04. The insider now owns 7,298 shares following the transaction. On Mar 31, Director Tung Hans sold 103,014 shares at $12.69 apiece. The transaction was valued at $1,307,536.

Financial Health

In the three months ended September 29, Poshmark Inc.’s quick ratio stood at 3.10, while its current ratio was 3.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 66.70% percent. In the year ended September 29, operating margins totaled -14.10%. Based on annual data, POSH earned $274.15 million in gross profit and brought in $326.01 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -11.00%. Return on equity (ROE) for the past 12 months was -23.70%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. POSH’s revenue rose 100.0% to $79.65 million during the quarter, while net income inched up to $83.65 million. While analysts expected Poshmark Inc. to report -$0.07 quarterly earnings, the actual figure was -$0.09 per share, beating the consensus estimate by -28.60%. During the quarter, the company generated -$12.6 million in EBITDA. The liabilities of Poshmark Inc. were 191.05 million at the end of its most recent quarter ended September 29. The value of shareholders’ equity is $77.69 million.

Technical Picture

This quick technical analysis looks at Poshmark Inc.’s (POSH) price momentum. With a historical volatility rate of 141.34%, the RSI 9-day stood at 56.18% on 13 May.

With respect to its five-day moving average, the current Poshmark Inc. price is up by +7.60% percent or $0.85. At present, POSH shares trade -0.74% below its 20-day simple moving average and -30.16% percent below its 100-day simple moving average. However, the stock is currently trading approximately -8.30% below its SMA50 and -70.25% below its SMA200.

Stochastic coefficient K was 36.51% and Stochastic coefficient D was 19.59%, while ATR was 1.34. Given the Stochastic reading of 81.00% for the 14-day period, the RSI (14) reading has been calculated as 52.06%. As of today, the MACD Oscillator reading stands at -0.72, while the 14-day reading stands at -0.93.

Analyst Ratings

Poshmark Inc. (POSH) has been rated Overweight by analysts. According to 0 brokerage firms, POSH is a sell, and 9 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Poshmark Inc. stock as buy, with 3 recommending it as overweight.

With a median target price of $14.00, the current consensus forecast for the stock is $11.00 – $24.00. Based on these forecasts, analysts predict Poshmark Inc. (POSH) will achieve an average price target of $15.27.


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