Booking stock will likely struggle in June, if past is precedent
Wells Fargo initiated coverage of Booking Holdings Inc (NASDAQ:BKNG) stock earlier with an "underweight" rating and $2,257 price target, which is a roughly 14% discount to last night's close. Nevertheless, the security is up 0.5% to at $2,656.95 at last check, after distancing itself from a May 18, record high of $2,786.85. So far this year, BKNG has added 31.5%.
The brokerage may be onto something, as Booking stock is historically one of the worst names to own in June. In fact, a new study from Schaeffer's Senior Quantitative Analyst Rocky White showed BKNG closed the month higher only twice during the last 10 years, with shares averaging a 2.9% dip during that four-week period over the past decade.
Options traders lean bullish, indicating an unwinding of optimism could weigh on BKNG. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day call/put volume that sits higher than 86% of readings from the past 12 months.
For those looking to weigh in on the stock's next move lower, options could be the way to go. This is per BKNG's Schaeffer's Volatility Index (SVI) of 51%, which stands in the low 11th percentile of its annual range.