Hydrofarm's 15-min chart shows RSI Oversold and KDJ Golden Cross signal.

Based on the 15-minute chart for Hydrofarm, there are two notable technical indicators that have triggered. Firstly, the Relative Strength Index (RSI) has reached an oversold level, suggesting that the stock price has dropped rapidly and fallen below its fundamental support level. Secondly, the KDJ indicator has formed a Golden Cross at 05/20/2025 11:45, indicating that the momentum of the stock price is shifting towards an upward trend and has the potential to increase further.

Hydrofarm Holdings Group Inc. (HYFM) reported its first-quarter 2025 earnings on May 13, 2025, revealing a challenging but improving financial landscape. The company's net sales dropped by 25.2% year-over-year (YOY) to $40.5 million, primarily due to a 22.6% decline in volume mix and a 1.8% decrease in pricing, driven by promotional activity and industry oversupply [1].

Despite these challenges, Hydrofarm Holdings Group Inc. showed signs of resilience. The company achieved an 11% reduction in adjusted SG&A expenses YOY, bringing the adjusted SG&A expenses to $17.9 million. The adjusted gross profit margin improved to 21% of net sales, up from 17% in the previous quarter, driven by a 55% increase in proprietary brand sales mix [1].

The company's proprietary nutrient brands, such as Grotek and House and Garden, performed better than expected, contributing to the improved adjusted gross profit margin. Hydrofarm Holdings Group Inc. is actively pursuing strategic alternatives, including potential acquisitions or strategic combinations, to enhance shareholder value [1].

However, the company faced significant challenges, including ongoing tariff uncertainties, particularly related to products sourced from China, which affected inventory and customer order patterns. The company's free cash flow was negative at -$12 million for the first quarter, and the total debt was approximately $127.3 million, including financial lease liabilities [1].

Technically, the stock of Hydrofarm Holdings Group Inc. (HYFM) has shown signs of improvement. The Relative Strength Index (RSI) reached an oversold level, indicating a rapid drop in the stock price below its fundamental support level. Additionally, the KDJ indicator formed a Golden Cross on May 20, 2025, at 11:45, suggesting a shift in the stock price's momentum towards an upward trend [2].

Looking ahead, Hydrofarm Holdings Group Inc. is focused on refining incentive programs and investing in its sales team's capabilities to drive growth in proprietary brand sales. The company is also expanding internationally with new distribution partners in Europe and Southeast Asia, and new proprietary product launches are expected in the US in the second half of the year [1].

References:
[1] https://finance.yahoo.com/news/hydrofarm-holdings-group-inc-hyfm-070950939.html
[2] [Provide a link or description of the 15-minute chart for Hydrofarm, if available]