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Turtle Beach Stock Rally Rejected By Familiar Level

HEAR's CEO said the company has had a "transformational year"

Feb 7, 2019 at 11:57 AM
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The shares of video game headset maker Turtle Beach Corp (NASDAQ:HEAR) made a big move out of the gate today, after the company told investors it's expecting to report strong results for the fourth quarter and 2018 as a whole. In the release, CEO Juergen Stark cited growing market share in North America as one reason for the success. The company is expected to release earnings sometime next month.

HEAR stock traded as high as $17.67 early on, a 10% leap from yesterday's close, but was last seen lower on the day at $15.75. Such a reversal from the $18 mark is not a new occurrence for the equity, a level that nearly coincides with a $250 million market cap. 

Specifically, this level has served as a ceiling for Turtle Beach since late November, a time when the 50-day moving average was still acting as resistance. Looking back further, it's been a steady downtrend for the security since it exploded to as high as $34.50 back in August, though it may be starting to consolidate in a tighter range as the long term 320-day moving average approaches from below. Plus, it's recently taken back that 50-day moving average, as you can see on the chart below, though $17.25 represents half that all-time high.

turtle beach stock

In the meantime, call activity is booming today. Almost 5,700 of the options have traded, compared to an average daily volume of fewer than 1,400. Seeing the most volume are the February 17.50 and 20 calls, though it's not clear if any new positions are being added here, as both strikes were home to heavy open interest coming into today.

Elsewhere, sentiment is mixed on the stock. Analysts love it, with all five in coverage saying it's a "strong buy," but short interest is extremely elevated, representing over half of the equity's total float.

 

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