Covid-19 harmed the company’s operations.
Tupperware Brands Corporation is thinking of job layoffs.
Fiery economic conditions are taking over several sectors without mercy.
People fear that another recession is brewing at the heart of this situation. Given the current economic scenario, the heat melts everyday household brand– Tupperware Brands Corporation (NYSE: TUP). The current state of affairs has become a cliffhanger after TUP stock lost almost half its value following the announcement of a liquidity crunch.
The Sinking Ship
The shares are currently witnessing a correction, with the stock gaining over 15% after falling to $1.21. TUP stock was trading at the market value of $1.32, raking in 1.5% yesterday, April 12. The food storage company has difficulty keeping the ship afloat for various reasons.
Covid-19 delivered a massive blow to the Tupperware Brands Corporation after restrictions barred users from entering physical stores. Now the company needs emergency funds as it doesn’t have adequate liquidity to iron out operational difficulties. Furthermore, job layoffs could be another significant loss that the company employees may have to face if the crisis persists.
What’s more, the New York Stock Exchange (NYSE) has served the company with a notice after it fails compliance with current regulations. According to a Securities and Exchange Commission (SEC) filing, Tupperware could not file form 10-K for the year ending December 31. Moreover, they may be unable to submit the report by the extended deadline.
Ultimately, their competitors may leverage the present scenario, considering potential consumers’ diversion from the organization. Tupperware rival Church and Dwight Co. Inc. (NYSE: CHD), a consumer goods company, has risen around 2% weekly. Meanwhile, another competitor, Newell Brands (NASDAQ: NWL), lost almost 5%.
TUP Stock Price Analysis
Before the recent pitch, company shares were consolidated, starting in November 2022, trading between $4.9 and $3.7 before falling almost 40% in February. The decline followed poor quarterly earnings as the company missed earnings per share (EPS) by a whopping 207%.
The average true range (ATR) is rising, highlighting increasing price volatility in the coming days. Aroon down is positioned above 85%, while Aroon up is 57%, indicating sellers’ control. January 2023, considering the shares, gained over 20% in a month. The stock holds support at $2.2 and resistance at $2.6. Consumer spending will be integral to the company’s growth as users may shift to their competitors’ manufactured products.
Nasdaq Composite took a nosedive of 1.6% in a week, a potential effect of the March 2023 job report released by the Bureau of Labor Statistics (BLS). The number fell short of expectation, with the unemployment rate changing to 3.5%. Poor economic conditions and recession remain key drivers for the outcome.
Furthermore, the recent cratering of financial institutions, including Silicon Valley Bank and Signature Bank, brewed fear across different sectors. Deloitte, a professional services network, identified increasing rate hikes, unsustainable growth in jobs, and more among the major issues pushing the persisting scenario in the market. The Federal Open Market Committee (FOMC) has voted unanimously to ascend hike rates between 4.75% to 5%.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
Source: https://www.thecoinrepublic.com/2023/04/13/tupperwares-stock-price-rumbles-even-though-it-tumbles-why/