Overstock.com Inc (NASDAQ: OSTK) stock continued its bullish rally, rising over 16% on 17th August, 2020 (as of 10:36 am GMT-4; Source: Google finance) after Piper Sandler initiated the stock with “Overweight” rating raising the target price of $140 against the current trading price of $108.46.
The firm reported an outstanding second quarter 2020, with Revenue rising 109% during the second quarter of 2020 against the same period in 2019, driven by rising retail product sales leading to a 120% rise in customer orders. Rising customer activity was driven by new customer growth and recurring customer behavior, due to online sales.
New Retail customers surged 205% yoy while the Gross sales from orders placed on a mobile device were 50.8% of Retail gross sales during the second quarter of 2020, from 43.9% in the second quarter of 2019. tZERO ATS trading volume surged 231% yoy to 931,000 shares, while Total number of tZERO Crypto app users increased 42% from March 31, 2020, and doubled on a year to date basis (as of second quarter 2020 update). tZERO and other Medici Ventures blockchain-based businesses continue to make progress, while Medici Ventures blockchain companies have seen little disruption. Accordingly, Gross profit surged 143% yoy during the second quarter of 2020 driven by rise in retail product sales and better margins. Gross margin rose to 23.0% in the second quarter of 2020, from 19.8% in pcp driven by benefit partner marketing allowance program, reduced promotional discounting, an increase in fees charged to partners due to unmet contractual service levels, and lower customer service costs.
The stock already rose over 1224.26% (Source: Finviz.com) in the current year to date due to the ongoing COVID Pandemic, shifty in online shopping and dividends. The firm Dividend was paid out at a ratio of 1:10, so that one share of Series A-1 preferred stock was issued for every ten shares of OSTK common stock, for every ten shares of Series A-1 preferred stock, and for every ten shares of Series B preferred stock held by all holders of such shares as of April 27, 2020.