DISH looks to be set up to make a solid recovery next year
DISH Network Corporation (NASDAQ:DISH) is inching higher, last seen up 0.1% at $32.92 this afternoon. Just last week, the company announced a new collaboration with 5G network name FreedomFI to provide wireless customers with access to the world's first community-driven, neutrally-hosted CBRS (Citizens Broadband Radio Service) hotspot network.
The security has had a volatile year on the charts, nearly halving from its May 10, three-year high of $47.05 following a November bear gap. More recently, the shares bounced off the $30 mark, but overhead pressure remains at the $34 level. Over the last three months, DISH has shed 24.8%.
Options traders have been more bearish than usual. This is per DISH's 50-day put/call volume ratio of 0.56 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of readings from the past year. In other words, while calls are outnumbering puts on an overall basis, this high percentile indicates an unusually healthy appetite for puts.
Meanwhile, shorts have been hitting exits, though bears are still in control. Short interest fell 11.2% in the most recent reporting period, but 23.85 million shares sold short make up 9.3% of the security's available float, or nearly two weeks' worth of pent-up buying power.
From a fundamental point of view, DISH Network has a relatively weak balance sheet, with $3.73 billion in cash, and $15.76 billion in total debt. DISH also previously reported back-to-back years of top- and bottom-line declines between 2017 and 2019. However, the company has also experienced significant top and bottom-line growth since 2019, increasing revenues 40%, and net income 85%.
What's more, DISH Network stock offers a great valuation at a price-earnings ratio of 7.91, and a price-sales ratio of 1.11. Overall, DISH looks to be set up to make a solid recovery heading into 2022.