Tupperware has seen a surge of 342% in the last month as speculative capital reentered the market, similar to the meme stock runs seen in the past. However, the company is facing challenges such as declining revenue and cash balance issues, which raise uncertainty about its long-term outlook. While Tupperware’s newfound retail following and meme-fueled rally may provide a temporary boost, there are questions regarding the sustainability of the stock’s current surge.
The meme stock craze of 2021, led by GameStop and AMC Entertainment, showcased the power of retail investors challenging institutional short-sellers. This collective action brought attention to market manipulation and finance democratization. A similar trend has emerged in recent weeks as speculative capital has reentered the market, resulting in a meme-type run in several stocks. Tupperware Brands Corporation, with a surge of 342% over the past month, has been the largest and most impressive mover. With its newfound retail following, the question arises: Is Tupperware on the road to recovery, or will this euphoric surge be short-lived?
Tupperware Brands Corporation is a global consumer products company specializing in kitchen and home solutions. It operates in around 70 countries and was founded in 1946, with headquarters in Orlando, Florida. The company has a market capitalization of $163 million, a short interest of 27%, and a 52-week range of $0.61 – $12.86.
In terms of ownership, 65.6% of TUP is owned by institutions, with $45.38 million in total inflows and $50.35 million in outflows over the previous twelve months. The two largest institutional owners are Vanguard Group and BlackRock, with ownership percentages of 6.742% and 6.501% respectively. Insider ownership stands at 2.19%, and there has been no insider selling over the previous twelve months. Two insiders purchased stock totaling $1.10 million during the same period.
Analyst coverage of TUP is minimal, with only two analyst ratings. The consensus rating is Hold, and the stock has a consensus price target of $5.50, which remains unchanged from three months ago. Despite the lack of significant news, TUP has experienced a substantial surge in its stock. This type of action is not new, as previous meme stocks have seen a surge driven by retail investor speculation, resulting in fundamental changes for the company. Some investors had rallied around Tupperware earlier based on rumors of a takeover by GameStop’s Ryan Cohen in April, despite concerns about Tupperware’s financial stability and late filing of required documents. While compliance with stock exchange requirements may temporarily improve due to the meme stock rally, uncertainty remains regarding Tupperware’s long-term outlook.
