PIK stock rose 61% on January 11, 2022, on no news. Large players are responsible for the move higher which suggests somebody well connected with a lot of money knows something. The stock started trading a couple of months ago and so the SEC deadline for reporting by insiders and institutional investors hasn’t motivated the disclosure of this information yet.
Kidpik initiated with a Buy at EF Hutton
On December 28, 2021, EF Hutton analyst Edward Reilly initiated coverage of Kidpik with a Buy rating and $10 price target. Kidpik, which provides children’s clothing subscription boxes, is a Buy at current levels as the company’s recent capital raise should allow it to increase advertising spending and accelerate customer acquisition, Reilly tells investors. He also notes that the company plans to expand into new markets like Canada and offer more clothing sizes in addition to having recently expanded its product offerings to include boys’ and toddlers’ apparel to add to its core business of girls’ apparel boxes.
Kidpik Reports Third Quarter 2021 Financial Results
On December 21, 2021, Kidpik Corp. an online clothing subscription-based e-commerce company, reported its financial results for its third quarter of 2021.
Revenue, net: increased 20.3% to $5,574,099 compared to $4,634,529 in the third quarter of 2020.
Subscription box revenue, net: was 85.1% of total revenue in Q3 2021 or $4,745,933, compared to $4,016,696 in Q3 2020.
Gross Margin: was 58.2% compared to 59.3% in the third quarter of 2020
Shipped items: increased by 18.9% to 559,000 shipped items, compared to 470,000 shipped items in the third quarter of 2020
Average shipments keep rate: was 68.8% compared to 68.2% in the third quarter of 2020
Net Loss: was $1,189,356 or $(0.22) loss per share, compared to $978,251 or $(0.26) loss per share in the third quarter of 2020.
“We’re pleased to report Q3 and nine-month net sales of $5.6 million and $16.6 million, an increase of 20.3% and 49.5% respectively, with nine-month subscription-based recurring revenue of $14.2 million or 85.5% of total revenue,” said Ezra Dabah, CEO of Kidpik Corp. “Our performance was driven mainly by the introduction of boys’ subscription boxes, the continued growth of our girls’ subscriptions and the newly introduced toddler box collection.”
“We are happy to have completed an upsized IPO of $18 million and to be listed on Nasdaq after the quarter end,” continued Mr. Dabah. “Strengthening our balance sheet gives us the ability to make further investments in building our brand, growing our revenue, and driving shareholder value. We look forward to achieving our growth objectives by leveraging our merchandising expertise, the technology we have built, and the knowledge our team has gained over the last five years in the rapidly growing subscription industry.”
Revenue by Subscription (Measured for 39 weeks ended October 2, 2021)
Active Subscriptions (recurring boxes): increased 55.7% to $11.5 million
New Subscriptions (first boxes): increased 14.9% to $2.7 million
Total Subscriptions: increased 45.8% to $14.2 million or 85.5% of total revenue.
Kidpik opens at $9.99, IPO priced at $8.50 per share
On November 11, 2021, Kidpik (PIK) priced 2.12M shares at $8.50. EF Hutton is acting as sole book running manager for the offering. Kidpik operates an online clothing subscription box for kids, offering mix-&-match, curated outfits.
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📉 PIK Stock Technical Analysis
That spiking large players volume likely means an institutional investor is accumulating the stock. The long-term trend is positive and the short-term trend is neutral. PIK is part of the Internet & Direct Marketing Retail industry. There are 84 other stocks in this industry, of which all are performing better than PIK. PIK is currently making a new 52 week low. This is a very bad signal. The S&P500 Index is trading in the upper part of its 52-week range, so PIK is lagging the market.
There is a resistance zone ranging from 6.46 to 6.55. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also resistance at 6.87 from a horizontal line in the daily time frame.
The technical rating of PIK is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when PIK stock consolidates and is a good long entry.