Guess Shares Soar 5.24% Amid Analyst Adjustments

Guess (GES) shares surged 5.24% today, reaching their highest level since January 2025 with an intraday gain of 12.33%.

The impact of a new high on GES's future price movements is bearish. The stock price consistently underperformed following the new high, with the largest negative returns occurring in the first month after the high. Specifically:

One Week After the High: The stock price decreased by 2.78%.

One Month After the High: The stock price decreased by 11.79%.

Three Months After the High: The stock price decreased by 14.08%.

These results suggest that investors should be cautious after the stock reaches a new high, as it is likely to experience downward pressure in the near term. The quant model's sell rating and the historical trend of poor performance following a high further support this conclusion.

Guess has been facing structural challenges and margin pressures, which have contributed to a significant decline in its stock value. Despite efforts to expand through acquisitions, the company's core weaknesses have persisted, impacting its financial performance.

Analyst actions have also played a role in the stock's performance. UBS analyst Mauricio Serna recently maintained a hold rating for Guess but reduced the target price from $18 to $15. This adjustment could influence investor sentiment and affect the stock's trajectory.