J.P. Morgan Securities cut DKS' price target to $228 from $235
While all eyes are on Nvidia's (NVDA) earnings report, retailers have been flooding the earnings docket as well. In fact, Dick's Sporting Goods Inc (NYSE:DKS) is headed to the confessional, with third-quarter earnings results due out before the open on Tuesday, Nov. 25. Analysts expect the footwear giant to announce quarterly profits of $2.71 per share on revenue of $4.45 billion.
DKS has a mixed post-earnings history, finishing four of its last eight next-day sessions lower and four higher, including a 4.8% drop after its last report. This time around, the options pits are pricing in a 10.3% next-day swing, regardless of direction -- much smaller than the 6.5% move the stock has averaged over the last two years.
Shares were last seen down 1.8% at $206.31, on the heels of a price-target cut from J.P. Morgan Securities to $228 from $235. The equity is on track for its fourth loss in the last five sessions and carries a 10.6% nine-month deficit, as it continues to test long-term support from the 200-day moving average.
Options traders have been much more bearish than usual. This is per DKS' 50-day call/put volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 94% of readings from the past year.