Sales Beat Boosts JILL Stock

J. Jill reported second quarter revenue that exceeded analysts' estimates

Retail name J. Jill Inc (NYSE:JILL) is in focus this morning, with the company reporting a strong second quarter this morning. The company posted revenue that beat analysts' expectations, citing positive traffic over the summer, and a smaller-than-expected loss for the period. The firm also lifted its full-year guidance. In response, JILL stock is up 2.4% after the open, following a more than 18% surge yesterday.

JILL is set for its second close atop its 60-day moving average since its late-May bear gap and subsequent record low of $1.24. Since this early June bottom, the equity managed to find a floor at its $1.60 region, and is now up nearly 87% since.

The security's recent success could attract some bull notes from the brokerage bunch. Right now, only one analyst calls JILL a "strong buy," while the rest have stuck it with a tepid "hold" rating. On the other hand, its 12-month consensus price target of $3.50 is a 47.1% premium to last night's close.

Short interest has been in decline during the last two reporting periods, off roughly 7% from its all-time high of 7.52 million shares. The 6.98 million shares currently sold short, however, represents a massive 44.7% of the stock's available float. At JILL's average pace of trading it would take over 13 days to cover all these pessimistic positions, which could add tailwinds, should even more of these bearish bets begin to unwind.