Hanesbrands stock puts are particularly popular
when i last picked it up Hanesbrands Inc. (NYSE: HBI) Just two weeks ago, Wells Fargo double downgrade We’re now ‘underweight’ the stock, lowering our price target from $13 to $5. Since then, HBI has appeared on Shafer’s Senior Quantitative Analyst Rocky White’s list of the 10 S&P 400 Mid Cap Index (IDX) stocks with the highest weekly options trading volume over the last 10 trading days. did.
Haynes Brand stock has traded 128,076 puts and 64,434 calls over the past two weeks, according to White’s data. The trend toward this bearish bet likely increased after the company reported lower-than-expected third-quarter earnings of $1.67 billion on Nov. 9. Most popular deal Nov. 7 A put of the day followed by a 7.50 put of the same month. Series.
It should come as no surprise that this leads to high put interest among short-term option traders. This is based on his Schaeffer Put/Call Open Interest Ratio (SOIR) of 1.46 for Hanesbrands shares, above the annual reading of 93%.
There was also a bearish barrage following the quarterly results. Specifically, at least five of his analysts lowered their price targets, with Credit Suisse adjusting from $10 to $7 and downgrading HBI from “outperforming” to “neutral.” did. All seven brokerage firms currently rate the stock as “Hold” or lower, and his $6.80 12-month consensus target price is a 9.5% discount to the current share price.
Haynes Brands shares were last trading 3.3% lower at $7.52, but after facing pressure from the trendline since mid-August, the stock has broken above the 40-day moving average for the second consecutive time. We are about to close. Last week, HBI posted his best weekly performance in over 12 months, but year-on-year he remains down 57.4%.