Yatsen Holding (NYSE:YSG) Stock Slumps 25% In a Week: Here is Why

In the past month, the cosmetics company Yatsen Holding (NYSE:YSG) has seen its stock take a sharp dive and clocked losses of as much as 25% during the period. Although the decline recorded by the stock is considerable, it is perhaps also necessary to keep in mind that there has been no news about the company in the past month.

Market Stats

On Wednesday, YSG stock moved down 6% at $2.90 with more than 3.33 million shares, compared to its average volume of 3.27 million shares. The stock has moved within a range of $2.8700 – 3.0900 after opening the trade at $3.08.

Major Driver

As a matter of fact, it was in August this year that the company was last in the news. Back on August 26, the Yatsen stock had declined sharply after the company announced its projections in its second fiscal quarter report.

The stock had dived since the projections offered were deemed quite weak. While that may be the case, it should be noted that in the second quarter, Yatsen performed quite strongly and its revenues soared by as much as 53% year on year to hit as much as $236.2 million.

The significant jump was primarily attributed to the fact that cosmetic sales had cratered at the peak of the coronavirus pandemic last year. As a matter of fact, the revenues posted in the second quarter also surpassed analysts’ estimates of $233 million. Investors could keep an eye on the stock at this point and watch for any signs of recovery.

Traders Corner

YSG stock is trading below the 20-Day and 50-Day Moving averages of $3.16 and $3.84 respectively. Moreover, the stock is trading below the 200-Day moving average of $9.63. The stock is down 57% in the past 3-month.