On Wednesday, Beyond Inc. (NYSE: BYON), an e-commerce retailer specializing in indoor and outdoor furniture and decorative items, was downgraded by Argus from Hold to Sell. The firm announced that it will cease coverage of Beyond Inc. in one month, explaining that the company no longer aligns with the stocks they aim to cover based on promise and client interest.
The downgrade comes as the stock trades near its 52-week low of $4.98, down significantly from its high of $37.1. InvestingPro data reveals that four analysts have recently revised their earnings expectations downward for the upcoming period.
Beyond Inc., previously known as Overstock (NYSE:BYON), has experienced a shift in business model, moving from surplus liquidation to focusing on online furniture and home goods retail. Despite this change, the company has returned to a loss-making position, with an EBITDA of -$203.48 million and revenue declining by 6.66% over the last twelve months.
According to InvestingPro's comprehensive analysis, which includes over 30 key metrics and financial health indicators, the company currently shows weak financial health scores.
In their statement, Argus noted that they will continue to provide written research on Beyond Inc. for the next 30 days. Moreover, clients with consultation privileges will still be able to discuss the company with Argus industry analysts on an ongoing basis.
The decision to downgrade comes after Beyond Inc. acquired some of the intellectual property assets of Bed Bath & Beyond, including the brand, domain name, and customer list. However, following this acquisition and transformation, the company has encountered a series of missteps leading to its current financial losses.
The downgrade reflects Argus's assessment that Beyond Inc. does not meet the criteria they have set for stocks under their coverage, which includes the potential for promising performance and generating significant interest among their clients.
In other recent news, Beyond Inc. has announced several significant developments. The company's Chief Legal Officer, E. Glen Nickle, is set to retire, transitioning to an advisory role within the company. Concurrently, Executive Chairman Marcus Lemonis has made substantial investments, acquiring over two hundred thousand shares of the company's common stock.
Despite a 16.6% year-over-year decline in revenues, reaching $311 million, the number of active customers increased by 21%, hitting the 6 million mark. However, orders delivered saw a 19% decrease year-over-year to 1.6 million.
Analyst firms Piper Sandler and Needham have adjusted their price targets for Beyond Inc. to $8 and $9 respectively, while BofA Securities downgraded the company from Neutral to Underperform, reducing their price target to $6.
In a strategic move, Beyond Inc. has also announced plans to sell its headquarters by the fourth quarter, projecting an annual reduction of $20 million in staff-related expenses. These are the latest developments for Beyond Inc., as the company continues to navigate the competitive e-commerce landscape.
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