Assessing Whether Ollie’s Bargain Outlet Holdings Inc. (NASDAQ: OLLI) Is Over- Or Undervalued

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    BlackRock Fund Advisors has recently announced that it has increased stake in Ollie’s Bargain Outlet Holdings Inc. (NASDAQ:OLLI) by 5.16%. After grabbing 4.56 million shares, the institutional investor is now in possession of 0.22 million shares of the Consumer Defensive Company. The new investment brought the stake of investor firm to 6.93% having worth around $478.99 million. Moreover, Artisan Partners LP increased its share by 0.85 million to have a control over 4.39 million shares. And Fidelity Management & Research Co.. raised its holdings to 0.87 million shares by acquiring 3.35 million shares or 5.10% of the stake.

    Ollie’s Bargain Outlet Holdings Inc. (OLLI) concluded trading on 08/26/20 at a closing price of $110.71, with 1.16 million shares of worth about $128.59 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 5.35% during that period and on Wednesday the price saw a gain of about 1.38%. Currently the company’s common shares owned by public are about 63.06M shares, out of which, 48.61M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 13 analysts are covering the OLLI stock and their offered price forecasts bring an average price target of $115.31. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $135.00 and could fall to a lowest price of $85.00. Analysts also issued an outlook of 2.20 for the Ollie’s Bargain Outlet Holdings Inc. stock for next 12 months. The stock’s current price level is 0.83% above of average price target set by the analysts, while a rise to estimated low would result in loss of -30.25 for the stock. However, touching the estimated high of $135.00 would mean a gain of 17.99% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 65 times over the past 12 months. They bought 208,058 shares in 33 of the transactions. In 32 selling transactions, insiders dumped 174,370 shares.

    Virtus KAR Small Cap Growth Fund, T Rowe Price New Horizons Fund, and Vanguard Total Stock Market Index are the top 3 mutual funds which are holding stakes in Ollie’s Bargain Outlet Holdings Inc. Virtus KAR Small Cap Growth Fund is currently holding 4.78 million shares of worth totaling $502.76 million. The company recently came buying 1.51 million shares which brought its stake up to 7.28% of the company’s outstanding shares. T Rowe Price New Horizons Fund sold -0.13 million shares, after which its hold over company’s outstanding shares shrunk to 3.97%, leaving 2.61 million shares with the mutual fund that have a worth of about $274.22 million. Vanguard Total Stock Market Index, after selling 1.54 million shares, have now control over 2.34% of the stake in the company. It holds 8294.0 shares of worth $161.95 million.

    Ollie’s Bargain Outlet Holdings Inc. (NASDAQ: OLLI) started trading at $109.65, above $0.45 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $110.71, or with a gain of 1.38%. Stock saw a price change of 5.35% in past 5 days and over the past one month there was a price change of 5.12%. Year-to-date (YTD), OLLI shares are showing a performance of 69.51% which increased to 43.31% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $28.83 but also hit the highest price of $110.97 during that period. While comparing its average daily trading volume of 1.41 million shares, we see that about 1.16 million changed hands on the day. The stock is currently trading 5.55% above its 20-day simple moving average (SMA20), while that difference is up 8.83% for SMA50 and it goes to 54.41% higher than SMA200.

    BlackRock Fund Advisors acquired 4.56 million shares of Ollie’s Bargain Outlet Holdings Inc. having value of about $478.99 million. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 0.22 million shares in the company valued at close to $24754977.42, or have control over 5.16% stake in the company. Holding of mutual funds in the company is about 61.93% while other institutional holders and individual stake holders have control over 67.86% and 47.42% of the stake respectively.

    The stock has a current market capitalization of $7.09B and its 3Y-monthly beta is at 1.31. PE ratio of stock for trailing 12 months is 53.43, while it has posted earnings per share of $2.07 in the same period. Its PEG reads 2.94 and has Quick Ratio of 0.70 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for OLLI, volatility over the week remained 4.84% while standing at 3.71% over the month.

    Analysts are in expectations that Ollie’s Bargain Outlet Holdings Inc. (OLLI) stock would likely to be making an EPS of $0.9 in the current quarter, while forecast for next quarter ESPS is $0.53 and it is $2.93 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.48 which is $0.96 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.35 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 4.60% while it is estimated to increase by 3.76% in next year. EPS is likely to shrink at an annualized rate of 18.15% for next 5-years, compared to annual growth of 31.10% made by the stock over the past 5-years.

    Analysts at 13 brokerage firms have issued recommendations for the Ollie’s Bargain Outlet Holdings Inc. (OLLI)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.20. Out of those 13 Wall Street analysts, 10 recommended a “Buy” rating, while 2 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Citigroup on July 22, 2020 offering a Sell rating for the stock and assigned a target price of $91 to it. Coverage by Craig Hallum stated Ollie’s Bargain Outlet Holdings Inc. (OLLI) stock as a Buy in their note to investors on May 26, 2020, suggesting a price target of $104 for the stock. On May 26, 2020, Credit Suisse Downgrade their recommendations, while on May 18, 2020, Goldman Initiated their ratings for the stock with a price target of $84. Stock get an Overweight rating from Wells Fargo on April 28, 2020.

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