Leslie’s Inc stock plunges to 52-week low at $0.76

Published 21/03/2025, 15:22
Leslie’s Inc stock plunges to 52-week low at $0.76

Leslie’s Inc (LESL) stock has hit a new 52-week low, dropping to $0.76, marking a significant downturn for the company’s market valuation to $147.44 million. According to InvestingPro analysis, the stock appears undervalued at current levels, with technical indicators suggesting oversold conditions. This latest price level reflects a stark contrast from its performance over the past year, with the stock experiencing a precipitous decline of -88.98%. Investors have been closely monitoring Leslie’s Inc as it navigates through challenging market conditions, which have seen its shares struggle to regain momentum. Despite the decline, the company maintains strong liquidity with a current ratio of 1.76, and analysts have set price targets ranging from $1.30 to $3.00. The 52-week low serves as a critical indicator for the company’s financial health and investor sentiment, as market participants consider the implications of such a substantial year-over-year change. For deeper insights and additional ProTips, check out the comprehensive research report available on InvestingPro.

In other recent news, Leslie’s Poolmart has experienced several noteworthy developments. Moody’s Ratings downgraded Leslie’s corporate family rating to Caa1 from B2, citing expectations of continued below-average operating performance due to a challenging consumer environment. S&P Global also downgraded Leslie’s credit rating from ’B+’ to ’B’, attributing it to increased leverage and compressed profitability. Despite these downgrades, both agencies maintain a stable outlook for the company, with expectations for revenue and profitability stabilization.

Additionally, Leslie’s shareholders approved amendments to the company’s corporate governance structure, allowing for the removal of directors without cause starting in 2027. The shareholders also ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending in October 2025. Furthermore, Leslie’s is set to be removed from the S&P SmallCap 600 index due to a decrease in market capitalization, which may affect the stock’s visibility among investors.

Telsey Advisory Group lowered its price target for Leslie’s shares to $3.00 from $3.75, following the company’s first-quarter fiscal 2025 results, which showed adjusted EBITDA below expectations. Despite this, Leslie’s reported positive comparable store sales growth, driven by strategic initiatives such as improving in-stock positions and converting stores into local fulfillment centers. The firm noted that while these initiatives show promise, the challenging macroeconomic environment continues to pressure demand in discretionary spending categories.

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