PETQ Stock Rallies After ICR Conference

PetIQ stock has moved above two important technical levels

by Josh Selway

Published on Jan 16, 2019 at 2:32 PM

PetIQ Inc (NASDAQ:PETQ) is enjoying a two-day rally thanks to the company's presentation at the ICR conference. The shares closed at $24.69 on Monday, and were last seen trading at $28.60 after trading as high as $31.55 earlier today. Despite paring most of its gains today, the equity is holding above its 200-day moving average and a trendline connecting a series of lower highs from the past few months.

petq stock chart

As for the presentation itself, the company discussed plans to double in size, and also laid out a $1 billion sales goal. This was enough for Jefferies to reaffirm its view of PETQ as its top small-cap growth pick, keeping its $39 price target in place. The brokerage firm also said it believes PetIQ will add five to six more retail partners this year.

All other covering brokerage firms are also bullish on the security, with all six handing out "strong buy" or "buy" recommendations. Meanwhile, the average 12-month price target stands up at $42.75.

Not everyone's upbeat on PETQ, however. For instance, the 3.93 million shares held by short sellers is eight times the stock's average daily trading volume. In just the last reporting period, short interest rose 9%.

As for options activity, volume has historically been light on an absolute basis on PetIQ. In today's trading, almost 600 calls have traded, which is actually 10 times the average daily volume, and new positions are being opened at the January 2019 31- and 32-strike calls.

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