Shares of Blue Apron (NYSE:APRN) are down more than 40% after the company forecasted third-quarter sales below analyst estimates and announced a $15 million Class A stock at-the-market (ATM) offering. Q3 revenue is now expected to be between $109 million and $112 million, down from previous estimates of between $125 million to $131 million. Meanwhile, analysts were expecting $129.6 million in revenue.
The lowered forecast is due to a large enterprise customer shifting their bulk order from Q3 to Q4. That customer is now expected to contribute $30 million of revenue during Q4, which includes the shifted order. Still, Blue Apron’s growth targets for 2022 are under pressure and will depend on additional bulk orders from the large customer.
Proceeds for the $15 million ATM offering will be used toward working capital and general corporate purposes. Furthermore, the proceeds will be used to help alleviate the company’s going concern risks. As of Sept. 29, Blue Apron only had $32.1 million in cash and cash equivalents, while debt totaled $27.4 million as of Sept. 30.
Earlier this year, the meal delivery service company inked two agreements to receive $69.4 million in capital. If Blue Apron receives the $69.4 million, it will be able to operate for the next 12 months. If the capital is not received, it will only be able to operate until Q1 of next year.
Blue Apron is clearly in a sticky situation, as consumer demand has been hampered by rising inflation and a weakening economy. Let’s take a look at the investors who haven’t yet lost faith in APRN stock.
5 Investors Betting Big on APRN Stock
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During Q2, only 66 13F filers reported owning APRN, a decline of seven filers from the previous quarter. However, the institutional put/call ratio sits at a low 0.49, up from 0.27 during Q1. Despite the rise, institutions still own more call options against the company than put options. So, who are APRN’s five largest investors?
- Joe Sanberg, early Blue Apron investor: 27.62 million shares.
- DPN Holdings: 3 million shares. DPN’s position is accurate as of Q4 of 2021.
- Barry Salzberg, former director: 1.88 million shares. Salzberg’s position is accurate as of Q3 of 2021.
- Matthew Salzberg, former director and co-founder: 1.73 million shares. Salzberg’s position is accurate as of Q4 2021.
- Wolf Hill Capital Management: 1.16 million shares. Wolf Hill sold 1.09 million shares during Q3.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.