$WEBR Short Squeeze Under The Grill
For more than 70 years in operation, Weber Inc. (NYSE: WEBR) is considered to be the global leader in outdoor cooking as it continues to innovate new products to enhance its customers’ grilling experiences. While the company is showing signs of financial struggles, WEBR is moving forward with a cost saving plan which could be the solution to the company’s financial woes. With this in mind, WEBR stock is grabbing investors’ attention at the moment thanks to its short squeeze potential given its high short interest rate. With the company receiving growing interest from Reddit and FinTwit investors, WEBR stock could be one to watch closely this week in case a short squeeze occurs.
WEBR Fundamentals
Short Squeeze
As the global leader in outdoor cooking, WEBR made its public debut in August 2021 at an IPO price of $14. While the stock reached its all-time high of $20 shortly after its IPO, WEBR stock has been trending downwards since then – reaching as low as $5.7. Although the company is a well-renowned brand throughout the world with operations in 78 countries, WEBR has been affected by the global supply chain issues arising from the Covid-19 pandemic and the current global inflationary environment which has affected the company’s ability to generate revenues. In light of the company’s financial woes, WEBR stock has been subject to strong short selling activity from bearish investors not confident in the company’s ability to generate revenues.
With “meme stocks” making a comeback recently highlighted by Bed Bath & Beyond Inc. (NASDAQ: BBBY) run to $30, WEBR stock has been garnering interest as a potential short squeeze play thanks to its high short interest rate. As of August 30, WEBR has a short interest rate of 57.6% with 41.9% of its float on loan. Meanwhile, utilization rate is at 100% which could be a strong signal of an upcoming short squeeze. With this in mind, WEBR stock is already witnessing strong buying activity as the stock is trending among Reddit and FinTwit investors as the next short squeeze play. For this reason, many investors are bullish WEBR stock could be poised to soar in the near future.
Restructuring Plan
Despite WEBR stock’s short squeeze potential, many investors view the company as a long-term investment now that it is working to solve its financial woes. With this in mind, WEBR is currently undergoing an internal restructuring to improve the company’s financial position in the coming quarters. The first move of this restructuring was the appointment of WEBR’s chief technology officer Alan Matula as an interim CEO following the departure of former CEO Chris Scherzinger. With more than 40 years of experience, Matula is already a staple in WEBR having been in the company since 2015 as a chief information officer before being appointed as chief technology officer. Through his experience within the company, many investors are bullish Matula will steady the ship as WEBR moves forward with its search for a permanent CEO.
Following Matula’s appointment, WEBR’s board approved a plan to manage its cash flows more efficiently and preserve liquidity. To facilitate this plan, WEBR suspended its $.43 quarterly cash dividend, terminated a number of senior executives, and reduced its non-manufacturing and distribution workforce by 10%. In addition, the plan includes the termination of a number of lease and contractual obligations as well as the sale of certain assets. Through this plan, WEBR is confident it could save $110 million at least in 2023 with run rate benefits beyond that. Now that the company is addressing its financial woes, WEBR stock could be a profitable hold in anticipation of this plan to bear its fruits.
Poland Facility
Another reason many investors are bullish on WEBR stock’s long-term prospects is the company’s expansion potential in the EU market. Back in October 2021, WEBR opened its 486 thousand square foot manufacturing and distribution hub in Poland. In this way, WEBR believes it could meet the growing demand for its products in this region more efficiently. With this in mind, WEBR is currently expanding this facility by an additional 250 thousand square feet to serve as a regional distribution center starting Q1 2023. Based on this, WEBR could be set to grow its revenues from the EU market in the future now that the company is able to offer its products to customers more efficiently in the EU region.
Institutional Ownership
Meanwhile, investors are bullish WEBR stock could provide major value in the future thanks to its institutional ownership. WEBR has 204 institutions invested in the company with 195 institutions long on the stock. This institutional ownership is highlighted by the Bill & Melinda Gates Foundation Trust which currently owns 2.5 million shares. At the same time, WEBR’s majority shareholder is Warren Buffett’s personal banker Byron Trott who owns more than 193 million shares representing 89% of the company. Since such highly regarded investors are holding the company’s shares for the long-term, WEBR stock could be a profitable long-term investment.
WEBR Financials
In terms of its Q3 financials, WEBR showed signs of significant decline as the company reported $527.9 million in revenues compared to $668.8 million a year ago. Moreover, the company’s gross profit declined to $153.6 million from $299 million in the same year-ago period. As a result of this decline, WEBR reported a net loss of $51.9 million despite reporting a net income of $17.8 million a year ago. In light of this, the company has implemented its cost savings plan which is expected to show significant results in 2023. As this plan would allow the company to save $110 million at least, WEBR could be in a better place financially in the future.
Meanwhile, WEBR reported $1.7 billion in assets including $40.8 million in cash and $279.6 million in accounts receivable. However, WEBR has $1.9 billion in liabilities with $1.3 billion in long-term liabilities. For this reason, WEBR would have to show significant growth in revenues in the coming years as its long-term debt could be detrimental to the company’s future plans.
Technical Analysis
WEBR stock is currently trading at $10.06 and has supports at 10.05, 8.66, 7.62, and 6.56. The stock also shows resistances near 11.77, and 14.1. With the stock gaining momentum as a potential short squeeze play, WEBR stock has been trending upwards this month and nearly reached $12 recently. The stock is currently retesting its support at $10.05 which is a pivotal price level for the stock. If the stock successfully pushes past this support, WEBR stock could reach near $12 again easily. However if this support fails to climb past this price level, WEBR could drop near $9 which could be an ideal entry point for believers in WEBR’s short squeeze potential.
Accumulation took a major hit following WEBR’s run near $12 due to investors taking profit. Meanwhile, the MACD is bullish but appears to be approaching a crossover in the near future. WEBR stock is slightly overbought at the moment with the RSI at 65. Based on this, bullish investors could wait for the RSI to regulate before entering a position in WEBR stock. As for its share structure, WEBR has an OS of 53 million and a float of 17.5 million.
WEBR Forecast
Given the company’s financial woes, WEBR stock is being targeted by a strong short selling activity. Based on this, WEBR is emerging as a strong short squeeze candidate with Reddit and FinTwit investors taking notice of the stock’s potential to run. With this in mind, WEBR stock recently climbed from $8 to nearly $12 and could witness a similar run if it continues witnessing strong buying activity.
Despite the stock’s short squeeze potential, WEBR stock could be profitable in the long-term as the company has taken steps to address its financial decline through its restructuring plan. As this plan could save the company $110 million in 2023, WEBR could be well-positioned for financial growth in the future. With this in mind, institutions appear to be confident in WEBR’s future prospects as 195 institutions are long on the stock. With well-known investors like Bill Gates and Byron Trott holding the stock, WEBR stock forecast appears to be bright in the future.
WEBR Fundamentals
Short Squeeze
As the global leader in outdoor cooking, WEBR made its public debut in August 2021 at an IPO price of $14. While the stock reached its all-time high of $20 shortly after its IPO, WEBR stock has been trending downwards since then – reaching as low as $5.7. Although the company is a well-renowned brand throughout the world with operations in 78 countries, WEBR has been affected by the global supply chain issues arising from the Covid-19 pandemic and the current global inflationary environment which has affected the company’s ability to generate revenues. In light of the company’s financial woes, WEBR stock has been subject to strong short selling activity from bearish investors not confident in the company’s ability to generate revenues.
With “meme stocks” making a comeback recently highlighted by Bed Bath & Beyond Inc. (NASDAQ: BBBY) run to $30, WEBR stock has been garnering interest as a potential short squeeze play thanks to its high short interest rate. As of August 30, WEBR has a short interest rate of 57.6% with 41.9% of its float on loan. Meanwhile, utilization rate is at 100% which could be a strong signal of an upcoming short squeeze. With this in mind, WEBR stock is already witnessing strong buying activity as the stock is trending among Reddit and FinTwit investors as the next short squeeze play. For this reason, many investors are bullish WEBR stock could be poised to soar in the near future.
Restructuring Plan
Despite WEBR stock’s short squeeze potential, many investors view the company as a long-term investment now that it is working to solve its financial woes. With this in mind, WEBR is currently undergoing an internal restructuring to improve the company’s financial position in the coming quarters. The first move of this restructuring was the appointment of WEBR’s chief technology officer Alan Matula as an interim CEO following the departure of former CEO Chris Scherzinger. With more than 40 years of experience, Matula is already a staple in WEBR having been in the company since 2015 as a chief information officer before being appointed as chief technology officer. Through his experience within the company, many investors are bullish Matula will steady the ship as WEBR moves forward with its search for a permanent CEO.
Following Matula’s appointment, WEBR’s board approved a plan to manage its cash flows more efficiently and preserve liquidity. To facilitate this plan, WEBR suspended its $.43 quarterly cash dividend, terminated a number of senior executives, and reduced its non-manufacturing and distribution workforce by 10%. In addition, the plan includes the termination of a number of lease and contractual obligations as well as the sale of certain assets. Through this plan, WEBR is confident it could save $110 million at least in 2023 with run rate benefits beyond that. Now that the company is addressing its financial woes, WEBR stock could be a profitable hold in anticipation of this plan to bear its fruits.
Poland Facility
Another reason many investors are bullish on WEBR stock’s long-term prospects is the company’s expansion potential in the EU market. Back in October 2021, WEBR opened its 486 thousand square foot manufacturing and distribution hub in Poland. In this way, WEBR believes it could meet the growing demand for its products in this region more efficiently. With this in mind, WEBR is currently expanding this facility by an additional 250 thousand square feet to serve as a regional distribution center starting Q1 2023. Based on this, WEBR could be set to grow its revenues from the EU market in the future now that the company is able to offer its products to customers more efficiently in the EU region.
Institutional Ownership
Meanwhile, investors are bullish WEBR stock could provide major value in the future thanks to its institutional ownership. WEBR has 204 institutions invested in the company with 195 institutions long on the stock. This institutional ownership is highlighted by the Bill & Melinda Gates Foundation Trust which currently owns 2.5 million shares. At the same time, WEBR’s majority shareholder is Warren Buffett’s personal banker Byron Trott who owns more than 193 million shares representing 89% of the company. Since such highly regarded investors are holding the company’s shares for the long-term, WEBR stock could be a profitable long-term investment.
WEBR Financials
In terms of its Q3 financials, WEBR showed signs of significant decline as the company reported $527.9 million in revenues compared to $668.8 million a year ago. Moreover, the company’s gross profit declined to $153.6 million from $299 million in the same year-ago period. As a result of this decline, WEBR reported a net loss of $51.9 million despite reporting a net income of $17.8 million a year ago. In light of this, the company has implemented its cost savings plan which is expected to show significant results in 2023. As this plan would allow the company to save $110 million at least, WEBR could be in a better place financially in the future.
Meanwhile, WEBR reported $1.7 billion in assets including $40.8 million in cash and $279.6 million in accounts receivable. However, WEBR has $1.9 billion in liabilities with $1.3 billion in long-term liabilities. For this reason, WEBR would have to show significant growth in revenues in the coming years as its long-term debt could be detrimental to the company’s future plans.
Technical Analysis
WEBR stock is currently trading at $10.06 and has supports at 10.05, 8.66, 7.62, and 6.56. The stock also shows resistances near 11.77, and 14.1. With the stock gaining momentum as a potential short squeeze play, WEBR stock has been trending upwards this month and nearly reached $12 recently. The stock is currently retesting its support at $10.05 which is a pivotal price level for the stock. If the stock successfully pushes past this support, WEBR stock could reach near $12 again easily. However if this support fails to climb past this price level, WEBR could drop near $9 which could be an ideal entry point for believers in WEBR’s short squeeze potential.
Accumulation took a major hit following WEBR’s run near $12 due to investors taking profit. Meanwhile, the MACD is bullish but appears to be approaching a crossover in the near future. WEBR stock is slightly overbought at the moment with the RSI at 65. Based on this, bullish investors could wait for the RSI to regulate before entering a position in WEBR stock. As for its share structure, WEBR has an OS of 53 million and a float of 17.5 million.
WEBR Forecast
Given the company’s financial woes, WEBR stock is being targeted by a strong short selling activity. Based on this, WEBR is emerging as a strong short squeeze candidate with Reddit and FinTwit investors taking notice of the stock’s potential to run. With this in mind, WEBR stock recently climbed from $8 to nearly $12 and could witness a similar run if it continues witnessing strong buying activity.
Despite the stock’s short squeeze potential, WEBR stock could be profitable in the long-term as the company has taken steps to address its financial decline through its restructuring plan. As this plan could save the company $110 million in 2023, WEBR could be well-positioned for financial growth in the future. With this in mind, institutions appear to be confident in WEBR’s future prospects as 195 institutions are long on the stock. With well-known investors like Bill Gates and Byron Trott holding the stock, WEBR stock forecast appears to be bright in the future.
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