HIBB Stock Hit With Pre-Earnings Downgrade

HIBB stock is heavily shorted, too

Mar 21, 2019 at 12:23 PM
facebook X logo linkedin


Retail earnings are in full swing, with sporting goods retailer Hibbett Sports, Inc. (NASDAQ:HIBB) set to unveil its fourth-quarter results ahead of the open tomorrow, March 22. HIBB stock is pacing for its third straight loss in the lead up to earnings, down 4.2% today at $17.77, after Consumer Edge Research downgraded the name to "equal weight" from "overweight."

History suggests HIBB shares could extend this negative momentum in tomorrow's trading, too. Hibbett Sports stock has closed lower the day after earnings in five of the last eight quarters, averaging a single-session loss of 10.8%. This time around, the options market is pricing in a 13.8% move, regardless of direction.

Amid low absolute volume, options traders have shown a preference for long calls over puts in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.2 calls have been bought to open for each put in the last 10 sessions.

It's possible these call options are being used by short sellers to hedge against any upside risk. Short interest on HIBB edged higher in the most recent reporting period to 4.41 million shares -- a notable 24.4% of the stock's available float, or 15.9 times the average daily pace of trading.

Looking closer at the charts, Hibbett Sports stock sold off sharply after hitting an annual high of $29.60 on Aug. 23, due largely to a 30.2% post-earnings plunge the very next day. The shares eventually bottomed at a 13-month low of $13.08 on Dec. 24. HIBB recently rallied all the way back up to $19.50 -- a 38.2% Fibonacci retracement of its late-2018 sell-off, and its 200-day moving average -- but is now mired in that three-day losing streak.

hibb stock daily chart march 21

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI