The Case for and Against Ollie’s Bargain Outlet Holdings (OLLI)

Ollie’s Bargain Outlet Holdings, Inc. (OLLI) is an interesting player in the Services space, with a focus on Discount, Variety Stores. The stock has been active on the tape, currently trading at $72.45, down from yesterday’s close by -1.76%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Ollie’s Bargain Outlet Holdings, Inc. (OLLI) currently trades with a market capitalization of $4.66 Billion. That value represents a market adjusting for revenues that have been growing by 21.15 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $88.31 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.36 on a per share basis this quarter. Perhaps, that suggests something about why 6.26% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Ollie’s Bargain Outlet Holdings, Inc. recorded a 52-week high of $77.50. It is now trading 5.05% off that level. The stock is trading $65.33 its 50-day moving average by -7.12%. The stock carved out a 52-week low down at $38.45.

In recent action, Ollie’s Bargain Outlet Holdings, Inc. (OLLI) has made a move of +11.38% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.04, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 9.27% with $51.45 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of OLLI.

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