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why is nls stock down

by Kyler Kuphal Published 3 years ago Updated 2 years ago
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Shares of Nautilus (NLS) dropped 11% today after Moderna announced that its COVID-19 vaccine candidate had achieved a strong efficacy rate of 94.5% in initial trials, sparking hopes that the pandemic's end is on the horizon. The news came a week after Pfizer and BioNTech said they achieved a 90% effective rate with their vaccine candidate.

Full Answer

Who bought nlsl stock?

May 06, 2022 · Negative. Very Negative. Source. Headline. Nautilus Biotechnology Reports First Quarter 2022 Financial Results - GlobeNewswire. globenewswire.com - May 4 at 6:40 AM. Analysts Expect Nautilus, Inc. (NYSE:NLS) Will Post Quarterly Sales of $120.20 Million. americanbankingnews.com - April 29 at 1:50 AM.

Who buys Nautilus (NLS)?

Aug 10, 2021 · Shares of Nautilus ( NLS 5.14% ) were down 12.1% at 10:12 a.m. EDT on Tuesday. The company released fiscal first-quarter earnings on Monday that beat revenue and earnings estimates, but it wasn't...

Will Nautilus (NLS) outperform or underperform the S&P 500?

Get the latest Nautilus, Inc. (NLS) stock news and headlines to help you in your trading and investing decisions.

Who holds Nautilus (Nol) stock?

Feb 23, 2021 · Shares of home gym-equipment company Nautilus ( NLS 1.55% ) fell as much as 27.5% on Feb. 23 before regaining some lost ground. Still, by roughly 2 p.m. EST, the stock remained lower by a huge 20% ...

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Find the latest Nautilus, Inc. (NLS) stock quote, history, news and other vital information to help you with your stock trading and investing.

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What happened

Shares of Nautilus ( NYSE:NLS) were down 12.1% at 10:12 a.m. EDT on Tuesday. The company released fiscal first-quarter earnings on Monday that beat revenue and earnings estimates, but it wasn't enough to please investors. After the stock soared in 2020, the stock is down 30% year to date, as investors brace for a slowdown following the pandemic.

So what

Nautilus said it welcomed 40,000 new customers to its brands through its website, bringing the total new customer count to 380,000 over the past 15 months. It averaged about 100,000 before the pandemic.

Now what

Despite those strong results, the market doesn't like growth stocks that post decelerating growth. The stock rocketed higher a year ago as sales growth accelerated to 152% in the September-ending quarter in 2020, but that will make for a very difficult comparison when the company reports next quarter's earnings.

How Is ROE Calculated?

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

Why Is ROE Important For Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential.

Summary

Overall, we feel that Nautilus certainly does have some positive factors to consider. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business.

How much did Nautilus sell in Q4?

Nautilus's Q4 sales came in at $189.3 million, up more than 80% from the year prior. However, analysts were hoping to see revenues of about $192 million. While that's not such a huge miss, you also have to look at the stock price to understand why it spooked investors. Over the past year, Nautilus's shares have been higher by around 500%, ...

Why did the sales of home gym equipment increase?

That's an impressive increase, helped along by the fact that the coronavirus pandemic forced people to avoid public spaces , like gyms. This, in turn, led to an increase in sales of home gym equipment as people didn't want to give up their exercising habits.

Who believes dividends are a window into a company's soul?

Reuben Gregg Brewer believes dividends are a window into a company's soul. He tries to invest in good souls.

Is Nautilus a stock?

Nautilus is a story stock, benefiting from the economic shutdowns and social distancing that came along with the coronavirus pandemic. It is likely that this is a unique windfall event and that, at some point in the not-too-distant future, the boost to sales and earnings will fade away as the world learns to deal with COVID-19. In fact, the sales trend here is already starting to hint that the peak is past, with Q3 revenues up 150% year over year, Q4 up about 80%, and the company projecting the next quarter could see year-over-year sales growth fall as low as 55%. That figure excludes the impact of the October sale of the Octane division, which will likely mean that adjusted growth comes in higher than 55%, but the company-provided numbers clearly didn't inspire confidence among investors

When is the NLS earnings call 2021?

NLS earnings call for the period ending September 30, 2021.

What are the sagging stocks in the US?

Sagging stocks American Outdoor Brands, Nautilus Inc., National Presto Industries and CarLotz Inc. make up half the portfolio.

Ongoing progress on coronavirus vaccine candidates threatens a major sales driver for home fitness equipment

Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

What happened

Shares of Nautilus ( NYSE:NLS) dropped 11% today after Moderna announced that its COVID-19 vaccine candidate had achieved a strong efficacy rate of 94.5% in initial trials, sparking hopes that the pandemic's end is on the horizon. The news came a week after Pfizer and BioNTech said they achieved a 90% effective rate with their vaccine candidate.

So what

Much like Peloton, Nautilus has seen sales skyrocket amid the pandemic, which has forced many retail gyms to close. In some cases, those gyms have declared bankruptcy and won't be reopening their doors.

Now what

While progress on two separate vaccine candidates is clearly good news in the broader fight against the coronavirus, investors are now pricing in the possibility that a major sales driver for home fitness equipment, a considerable discretionary expense, will fade within a year or two.

How much revenue did Nautilus have in 2019?

In a year when Nike reported high engagement with its Training Club app, and Apple entered the market with the launch of Fitness+, Nautilus still managed to grow revenue 79% over 2019 -- a sign of how much demand was in the marketplace last year. Still, investors might be sensing a problem for Nautilus moving forward.

Is Nautilus losing market share?

In addition to the potential for slowing growth in the near term if more people return to the gym, Nautilus is losing market share to Peloton Interactive ( NASDAQ:PTON) in a wide open market for at-home fitness equipment.

How many research reports has Nautilus had?

Nautilus has only been the subject of 3 research reports in the past 90 days.

Where does Nautilus trade?

Nautilus trades on the New York Stock Exchange (NYSE) under the ticker symbol "NLS."

Is Nautilus a buy or sell company?

Nautilus has received a consensus rating of Buy. The company's average rating score is 2.60, and is based on 3 buy ratings, 2 hold ratings, and no sell ratings.

Does Nautilus pay dividends?

Nautilus does not currently pay a dividend.

Signals & Forecast

The NLS Pharmaceutics AG stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.

Support, Risk & Stop-loss

NLS Pharmaceutics AG finds support from accumulated volume at $1.19 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

Is NLS Pharmaceutics AG stock A Buy?

Several short-term signals are positive and the break-up from the falling trend indicates a possible shift for a trend. We believe that the prices around the breaking point will indicate particularly good levels, but we also believe that the current level will hold a possible good buy level for the short-term period.

Golden Star Signal

This unique signal uses moving averages and adds special requirements that convert the very good Golden Cross into a Golden Star. This signal is rare and, in most cases, gives substantial returns. From 10 000+ stocks usually only a few will trigger a Golden Star Signal per day!

Top Fintech Company

featured in The Global Fintech Index 2020 as the top Fintech company of the country.

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How Is Roe calculated?

  • ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Nautilus is: 49% = US$89m ÷ US$183m (Based on the trailing twelve months to March 2021). The 'return' is the income the business earned over the last year. That means that for every $1 worth of sharehold…
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Why Is Roe Important For Earnings Growth?

  • We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and pro…
See more on nasdaq.com

A Side by Side Comparison of Nautilus' Earnings Growth and 49% Roe

  • Firstly, we acknowledge that Nautilus has a significantly high ROE. Secondly, even when compared to the industry average of 31% the company's ROE is quite impressive. As you might expect, the 20% net income decline reported by Nautilus doesn't bode well with us. We reckon that there could be some other factors at play here that are preventing the company's growth. These …
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Summary

  • Overall, we feel that Nautilus certainly does have some positive factors to consider. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. In addition, on studying the...
See more on nasdaq.com

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