Stifel downgraded the stock to "hold" from "buy"
The shares of Poshmark Inc (NASDAQ:POSH) are down 4.3% at $12.12 this morning, following a downgrade from Stifel. The analyst lowered it rating to "hold" from "buy," and cut its price target to $15 from $19, saying that Apple's privacy changes have hindered the efficacy of the company's marketing investments and dampened its user growth while marketing costs rise.
Poshmark stock has been languishing below the $15 level since mid-February, which wasn't helped by last week's dismal earning turnout, while the 50-day moving average has also kept a lid on shares since last July. Meanwhile, POSH just logged its fifth-straight monthly loss, and it's shed more than 28% in 2022.
There's still room for bear notes, as the 12-month consensus price target of $16.75 is a 38.7% premium to current levels. Meanwhile, four of the 14 in coverage still call the stock a "buy" or better.
Short sellers have been firmly in control. Short interest climbed 16.7% in the last two reporting periods, and now makes up 10.2% of the stock's available float, or nearly a weeks' worth of pent-up buying power.