Has Waitr Holdings Inc. (NASDAQ:WTRH) Stock Attracted A Large And Growing Short Interest?

For the period that ended December 31, 2019, the short interest in Waitr Holdings Inc. (NASDAQ:WTRH) stock is on the down. The 12.54% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 2.3 suggests acquiring these shares. Between December 13 and December 31, the total count of shorted shares totaled 8.5 million. That number was 1,218,828 less shares compared with the total of 9.72 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for WTRH at the December 31st settlement surged to 1,343,670, versus 1,232,489 at the December 13th report. That led days to cover to move at 6.328695, a 19.77% decrease compared to the 7.888513 days to cover recorded at the prior short interest data release.

In the recent trading session, Waitr Holdings Inc. (NASDAQ:WTRH) shares lost -6.37% or -0.02 points to close at $0.37 with a thin trading volume of 1.024 million shares. It opened the trading session at $0.3944, the shares rose to $0.3978 and dropped to $0.369, the range by which the price of stock traded the whole session. The company now has a market cap of $32.01 million and currently has 81.22 million outstanding shares. Waitr Holdings Inc. (WTRH) stock has plunged -16.47 percent of market value in 21 trading days.

WTRH stock’s trailing 3-year beta is 0.46, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$4.44 share in the trailing 52 weeks. The stock’s value surged 22.39 percent year to date (YTD) compared to a decline of -96.63 percent in 52 week’s period. The firm’s shares are still trading -97.5 percent below its 1-year high of $14.77 and 73.65 percent up from 52-week low of $0.21. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Past records have indicated that shares in Waitr Holdings Inc. declined on 3 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of WTRH’s Q4 earnings on March 05. Analysts are predicting revenue to climb 140.7 percent to $51.2M in the financial fourth quarter, while EPS will soar by about 40.91 percent to -$0.31 per share. In the last quarter, it’s earnings of -$0.3674 per share came worse than the -$0.206, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $21.27M, topping the $19.44M analysts had expected. Earnings are seen to rise by 19.1 percent this year, 79.2 percent in the coming year and the trend continues by 26 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Waitr Holdings Inc. (NASDAQ:WTRH) and observe the pattern. The earliest insider trade happened on 11/20/2019. SCHRAMM DAMON E. parted with a total of 61.75 thousand shares of the firm at average share price of $0.37. The total amount for the sale was set at $22.85 thousand. On completing this exchange, the Chief Legal Officer account balance was 14 thousand shares. The stock lost 0 percent from that insider sale. On 08/20/2019, FERTITTA TILMAN J, Director, did a purchase of 1 million shares at a price of $1.43 per share. This increased 1.43 million shares to the insider’s fortune and the stock experienced a -74.13 percent retreat in price since the news became public. This exchange saw 5 million shares get into the Director account.

On 08/19/2019, Director Stream William Gray recorded a purchase transaction valued at $144 thousand. The purchase at $1.44 a share has added 100 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -74.31 percent decrease since the transaction reporting date. The company insider is left with 1.55 million shares remaining in the account. Stough Joseph, who works as President at the company, performed a purchase of 45 thousand shares in a transaction worth $66.15 thousand. The acquisition recorded on 08/19/2019 was priced at $1.47 per share. The stock price plunged -74.83 percent since the transaction. Stough Joseph currently holds a stake of 939.86 thousand in WTRH stock which is worth $347.75 thousand after the insider buying.

The stock is lingering around the initial support level of $0.37. After this, the following support is at the zone of $0.35. Up until the time the WTRH stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 49.31 on the daily chart, and this may be a cause for concern. In case the price goes below $0.35 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $0.42 level may cause a pull-back move approaching $0.44 mark.