Leslie's (LESL) | News Based Sentiment Analysis

• On October 1, 2025, Leslie's Inc. (LESL.O) initially saw a surge to a 52-week high driven by investor excitement around a planned reverse stock split, intended to meet Nasdaq's minimum bid price requirements and potentially attract institutional investors. However, this initial optimism quickly faded, as the stock closed the day with a significant 10.36% loss.
• The volatility continued after market close on October 1, 2025, with the stock falling an additional 8.4% in after-hours trading, signaling a rapid shift in investor sentiment. This dramatic price swing highlights the stock's sensitivity to market perceptions and regulatory compliance.
• Analysts are expressing a bearish outlook, forecasting a potential decline in Leslie's stock price over the next 12 months. As of October 1, 2025, the average 1-year price target is $3.30, with a wide range from $0.35 to $12.00, indicating considerable uncertainty.
• Technical analysis conducted on October 1, 2025, identified a KDJ Death Cross and Bearish Marubozu pattern on Leslie's 15-minute chart, further reinforcing the expectation of a continued downward trajectory. This suggests short-term trading signals align with the broader bearish sentiment.
• Trading volume spiked on October 2, 2025, reaching 295,098 shares, significantly exceeding the average volume of 164,533. This increased activity, coupled with a 52-week range of $5.36 to $72.60 and a market capitalization of $56,332,119, demonstrates heightened investor interest despite recent price declines.
• Despite the overall negative sentiment, Telsey Advisory Group offered a slight adjustment to their outlook on October 3, 2025, increasing their FY2025 EPS estimate to ($4.76) from ($5.00), while maintaining a "Market Perform" rating and a $7.00 price target.
• Looking ahead, Telsey Advisory Group provided EPS projections through FY2026 on October 3, 2025, forecasting Q4 2025 at $1.10, Q1 2026 at ($4.04), Q2 2026 at ($4.44), Q3 2026 at $5.48, Q4 2026 at $1.30, and FY2026 at ($1.91).
• Institutional investors showed some increased confidence, with Engineers Gate Manager LP increasing their position by 309.7% to 61,474 shares ($26,000), Wealth Enhancement Advisory Services LLC growing their stake by 106.9% to 37,279 shares ($27,000), and Pallas Capital Advisors LLC boosting their holdings by 168.6% to 63,888 shares, all as of October 3, 2025.
• On October 5, 2025, Leslie's announced leadership changes, with Jeff White becoming the new Chief Financial Officer and Treasurer, succeeding Tony Iskander, who will step down as Treasurer on October 4, 2025.

The Investment Story: October proved to be a volatile month for Leslie's, beginning with initial optimism surrounding a stock split but quickly turning bearish due to significant price declines and negative analyst sentiment. Despite some institutional investment, the overall narrative points to considerable uncertainty.

What It Means for Investors: The mixed signals – a stock split attempt alongside declining prices and bearish analyst ratings – create a high-risk investment scenario. Investors should carefully consider the potential for further downside, even with some institutional support and a slight EPS estimate increase.

Looking Ahead: Investors should closely monitor Leslie's performance against Telsey Advisory Group's EPS projections for the upcoming quarters and FY2026, as well as track any further changes in analyst ratings and institutional holdings. The success of the stock split in attracting institutional investors will also be a key factor.

The Bottom Line: Leslie's Inc. faces significant headwinds, and while institutional interest provides a glimmer of hope, the prevailing bearish sentiment and technical indicators suggest caution is warranted. The company's ability to navigate these challenges and deliver on projected earnings will be crucial for its future performance.