Waldencast stock hits 52-week low at $2.01 amid market challenges

Waldencast Acquisition Corp. (WALD) stock has touched a 52-week low, trading at $2.01, as the company faces a challenging market environment. According to InvestingPro analysis, the company maintains strong gross profit margins of 70% and a healthy current ratio of 1.35, though current market conditions have pushed the stock below its Fair Value. This price level reflects a significant downturn from the stock’s performance over the past year, with Waldencast experiencing a 1-year change of -53.54%. Investors are closely monitoring the stock as it navigates through these market conditions, which have led to a notable decline from its previous highs. Trading at just 0.39 times book value, the stock shows potential value characteristics. The company’s strategic decisions in the coming months will be crucial as it seeks to recover and potentially reposition itself for growth in a competitive sector. For deeper insights, InvestingPro subscribers can access 13 additional ProTips and a comprehensive research report on WALD.

In other recent news, Waldencast Acquisition Corp reported its first-quarter 2025 earnings, revealing a larger-than-expected loss with an earnings per share (EPS) of -$0.07, which missed the forecasted EPS of -$0.038. The company’s revenue also fell short, coming in at $65.4 million against an expected $68.34 million, marking a 4.1% decrease year-over-year. This performance led to adjustments in stock price targets by analysts, with Canaccord Genuity reducing the target to $5.00 while maintaining a Buy rating, and Telsey Advisory Group lowering it to $4.00, maintaining an Outperform rating. Both firms highlighted challenges faced by Waldencast’s brands, Milk Makeup and Obagi, with Milk Makeup seeing a 15.1% year-over-year sales decline and Obagi experiencing stock shortages due to supply chain issues.

Despite these setbacks, Waldencast’s management remains optimistic about meeting its full-year 2025 sales and EBITDA guidance, driven by new products and expanded distribution. The company has been expanding its partnerships and product lines, including a significant entry into Ulta Beauty (NASDAQ:ULTA) stores. Analysts from Canaccord and Telsey noted that Waldencast’s gross margin outperformed predictions, and the company is expected to benefit from a robust product pipeline and improved stock availability in the coming quarters. Waldencast’s adjusted EBITDA for the quarter was $4.4 million, representing a 6.7% margin, which fell short of the anticipated figures by analysts. The company continues to focus on strategic initiatives to improve its financial health and market presence.

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