What Happened?
Shares of pet products provider Bark (NYSE:BARK) fell 3.4% in the afternoon session after technical indicators pointed toward a bearish trend and an increase in bets against the stock. The company's overall moving average trend leaned bearish. More specifically, a key short-term technical signal remained below a longer-term one, which suggested a strong downward trend. Adding to the pressure, the percentage of shares sold short increased to 28.73%. This activity indicated that a notable number of traders were positioning for the stock's price to fall even further.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bark? Access our full analysis report here.
What Is The Market Telling Us
Bark’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.1% on the news that the stock moved on what appeared to be technical trading activity. The move came after the stock had experienced a period of decline, falling in 6 of the last 10 trading days for a total drop of about 8%. On the previous trading day, the price fell by over 2%. The stock also showed significant fluctuation, with a range of nearly 6% between its high and low points during that session. Given the lack of a clear catalyst, the day's price increase seemed to be a result of normal market volatility rather than a reaction to any specific company development.
Bark is down 65.1% since the beginning of the year, and at $0.66 per share, it is trading 71.7% below its 52-week high of $2.33 from December 2024. Investors who bought $1,000 worth of Bark’s shares 5 years ago would now be looking at an investment worth $53.23.
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