Agriculture Stock Tends to Make Big Post-Earnings Moves

The security has added over 96% in the past nine months

facebook twitter linkedin

The shares of agribusiness concern Andersons, Inc. (NASDAQ:ANDE) are down 1.5% at $28.42 this afternoon. The security has cooled off from its March 12, two-year high of $30.83, though it is still up 96.3% over the past nine months. Today's dip comes roughly a week prior to the equity's first-quarter earnings report, which is due out after the close on Tuesday, May 4. Below, we will take a closer look at the stock's performance, and explore some of its previous post-earnings activity.  

On the charts, Andersons stock has been trading mostly sideways since its March peak. The security regained support from the 60-day moving average in early November, while the $27 level has recently acted as a floor for the shares. Meanwhile, the equity has been unable to overcome overhead pressure at the $29.50 mark in recent weeks.

Andersons stock has had a mixed history of post-earnings reactions over the past two years. In fact, four of these next-day sessions were lower during its past eight reports, while four were higher, including a 16.9% drop in November 2020. The security has averaged a post-earnings swing of 9.5% in the last eight quarters, regardless of direction. This time, the options market is pricing in a bigger move of 11.7%.

Also worth noting is that the company has been able to increase its revenue in a major way over the past few years, but has yet to capitalize on the bottom-line. Since 2018, Andersons has grown revenue by 170%, despite registering minimal growth in 2020. However, the company announced just $7.71 million in net profits in its latest annual report.

Overall, with a cash balance of just $29.29 million, and $1.48 billion in debt, the company won’t have many resources to continue expanding its business, at least in 2021. As a result, ANDE will have to focus on turning big revenue into profits, starting with this quarter’s earnings. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners