Checking In on This Cloud Stock Ahead of Earnings

The equity has a history of mixed post-earnings reactions

Digital Content Manager
Nov 24, 2021 at 2:39 PM
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The shares of Box Inc (NYSE:BOX) are up 2.2% at $24.19 this afternoon, recovering from yesterday's drop to its lowest level since September, following a rise in the 10-year Treasury yield. The company is now eyeing its third-quarter earnings call, which is due out after the close on Tuesday, Nov. 30. Below, we will explore the security's technical setup, as well as some of its previous post-earnings activity. 

Box stock has been cooling off from a rally to the $27 level over the last pew weeks, which is just shy of its July 2, three-year high of $27.40. This recent pullback also has the equity eyeing its second-straight close below the 180-day moving average, which captured its September trough. Longer term, BOX sports a 33.9% year-to-date lead.  

BOX 180 Day

The equity has a history of mixed post-earnings reactions, finishing half of the last eight next-day sessions higher during the last two years, while the other half was lower, including an 8.8% drop in December 2020. Options traders are pricing in an 8.5% swing for BOX this time around, which is more than double the 4% move it averaged after its last eight reports, regardless of direction.

Short sellers are already hitting the exits, though Box stock still looks ripe for a short squeeze. Short interest fell 8.2% in the last two reporting periods, yet the 10.37 million shares sold short account for a significant 7% of the security's available float, or nearly one week's worth of pent-up buying power. 

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