Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Mar 1, 2022 at 3:08 PM
  • Best and Worst Stocks

Russia's invasion of Ukraine has brought even more volatility to Wall Street, with all three major indexes registering their second-straight month in the red for February. As investors look to spare their portfolios from additional losses, they may want to consider avoiding Twitter Inc (NYSE:TWTR). In fact, the social media concern is already getting targeted by Russia's state communications regulator, which slowed down Twitter's traffic on computers over what it called fake posts about its "special operation" in Ukraine. In addition, Benchmark initiated coverage of TWTR earlier today with a "hold" rating.

Despite being up 0.2% at $35.63 this afternoon, Twitter stock also just showed up on Schaeffer's Senior Quantitative Analyst Rocky White's list of 25 worst performing S&P 500 Index (SPX) stocks for March, making now an opportune time to check in on the stock's technical setup. 

Worst of March 2022 

According White's data, which features SPX stocks with the worst returns this month over the last 10 years, TWTR averaged a loss of 8.8%, and finished higher just twice. Twitter also stands out as the second-worst name on the list, and only social media company. 

Twitter stock has been testing a floor at the $32 mark since January. The 30-day moving average has been guiding the shares lower since late October, when the security's rally was turned down at the $68.50 level. Year-over-year, TWTR sports a 54.3% deficit.

TWTR 30 Day

Options traders are already catching on. Twitter stock's 10-day put/call volume ratio of 1.22 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all other readings from the last year. This means that puts are being picked up at a much quicker-than-usual clip. 

Published on Mar 1, 2022 at 2:52 PM
  • Buzz Stocks

Intel Corporation (NASDAQ:INTC) is an American technology company and one of the world's largest semiconductor chip manufacturers. INTC supplies microprocessors for computer system manufacturers such as Acer, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing. At last glance, INTC was trading down 2.1% at $46.69.

On Feb. 18, the tech company announced that Christoph Schell was appointed Executive V.P. and Chief Commercial Officer to lead the sales, marketing, and communications group, effective March 14. Schell will succeed Michelle Johnston Holthaus, who will take on a new role as general manager of Intel’s Client Computing Group. Schell joins Intel from HP (HPQ), where he was most recently Chief Commercial Officer.

Intel stock has decreased 25% year-over-year and has shed 30% since peaking at a 52-week high of $68.49 last April. Additionally, shares of INTC have dropped 10% year-to-date but have managed to tack on 7% since hitting a bottom of $43.63 just hit at the end of February. 

The semiconductor name also has a forward price-earnings ratio 13.91 and a price-sales ratio of 2.47, representing a great valuation for one of the biggest players in the tech industry. In addition, INTC offers a forward dividend of $1.46 or a dividend yield of 3.06%, making Intel stock a great option for both value and dividend investors.

Analysts are leaning pessimistic, leaving an opening for upgrades in the near future. Specifically, 20 of 23 covering brokerages sport a tepid "hold" or worse recommendation.

Published on Mar 1, 2022 at 1:53 PM
  • Earnings Preview
 
Published on Mar 1, 2022 at 12:01 PM
  • Buzz Stocks

Bloomin' Brands, Inc. (NASDAQ:BLMN) stock is down 3.2% at $23.69 today, set to close below the recently supportive 10-day moving average for the first time since January. The stock has shown a bit of resiliency against the volatility markets have been seeing, though, boasting a year-to-date return of 12% and hitting its highest settlment in over three months just a few sessions earlier. What's more, BLMN also offers a dividend yield of 0.56% with a forward dividend of $0.14.

blmn marcg 1

Despite the stock's outperformance, short sellers have been zeroing, with short interest inching 3.2% higher during the last reporting period and now making up almost 18% of the stock's available float. It would take over seven days to cover these bearish bets, at BLMN's average daily pace of trading, which could lead to a short squeeze, should some of these shorts begin to jump ship. 

Meanwhile, BLMN's Schaeffer's Volatility Index (SVI) of 50% sits in the relatively low 30th percentile of its annual range. This implies that options traders are pricing in lower volatility expectations for the equity, making now a good time to speculate on the stock's next move with options. 

Moreover, Bloomin’ Brands stock's most attractive aspect from a fundamental point of view is undoubtedly its valuation. BLMN trades at a forward price-earnings ratio of 10.27 and a price-sales ratio of 0.65, which are both cheap valuations by most standards. In addition, Bloomin’ Brands has grown its annual revenues 30% and has increased its annual net income by $378 million since fiscal 2020, after reporting $162 million in net losses that year. Bloomin’ Brands is also estimated to grow earnings 16.4% and revenues 4.9% for fiscal 2022.

However, BLMN's revenue growth rate has been unimpressive over the course of the years, with its fiscal 2021 revenues down slightly in comparison to fiscal 2018. The restaurant holding company also offers very little long-term security due to the large amount of debt held on the balance sheet. BLMN currently has $2.15 billion in total debt and just $87.58 million in cash. In general, Bloomin’ Brands stock could be decent option to hold in 2022 but may be too much of a liability as a long-term investment.

Published on Mar 1, 2022 at 10:48 AM
  • Options Recommendations
Food processing name Bunge Ltd (NYSE:BG) is signaling a bull flag that put it in bullish engulfing territory yesterday as it pulled back to the 40-day moving average, which has been one of the more significant trendlines for the equity during past bull cycles. The security is now trying to make a break above the +10% year-to-date level, which could be cause for concern if BG didn’t exhibit impressive resilience during a particularly volatile week for markets. Plus, the stock recently saw a breakout above the $93 level, which is home to its 2014 and 2015 highs, and has been holding near an area that represents two times its 2016 lows over the past two days. Considering this promising technical setup, now looks like an ideal time to speculate on BG’s next leg higher with calls.
bg chart march 1

 

Even better for call buyers, the stock’s Schaeffer’s Volatility Scorecard (SVS) ranks at 88 out of a possible 100. In other words, the stock has tended to exceed options traders’ volatility expectations over the past year.
 
Bunge stock looks ripe for a round of bull notes, as its 12-month consensus price target of $117 is an 11% premium to current levels. What’s more, two of the four analysts covering the stock still consider it a “hold,” while the other two say “strong buy.”
 
With all that said, our recommended call option has a leverage ratio of 5.8 and will double in a 16.5% pop in the underlying shares.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this BG commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Published on Mar 1, 2022 at 10:41 AM
  • Intraday Option Activity
  • Buzz Stocks
So far, options volume is running at double what's typically seen at this point. The June 2,900 call is the most popular, followed by the weekly 3/4 2,000-strike call, with new positions being bought to open at the latter. 
Published on Mar 1, 2022 at 10:30 AM
  • Buzz Stocks
  • Intraday Option Activity
 
Published on Mar 1, 2022 at 10:02 AM
  • Analyst Update
  • Buzz Stocks
Today, however, calls are king, with 2,064 of these contracts exchanged so far, which is double the intraday average. 
Published on Mar 1, 2022 at 9:32 AM
Updated on Mar 1, 2022 at 9:35 AM
  • Buzz Stocks

Target Corporation (NYSE:TGT) stock is soaring in premarket trading as investors celebrate the big box retailer's fourth-quarter earnings beat. Though revenue fell just short of expectations, the company noted 9% sales growth and said that it expects sales to keep rising, projecting 2022 revenue and earnings growth that topped analysts' forecasts. Target stock was last seen up 13.9% at $227.62.

Should these gains hold, TGT could be headed for its highest close since early January. The stock is also set to topple several key trendlines, including its 30-day moving average, which has put pressure on the stock since November. Target stock is just three sessions removed from its annual low of $184, but is now eyeing its fourth-consecutive daily win. 

While analysts have yet to chime in, MKM Partners issued a bull note just ahead of the event, lifting its price target to $250 from $248. The stock's 12-month consensus price target of $273.55 is a 20% premium to last night's close. The majority of analysts in coverage were bullish coming into today, though some remain hesitant. Of the 19 in coverage, 15 say "buy" or better, while four say "hold."

Meanwhile, options traders have held fast on their bearish stances. The stock sports a 10-day put.call volume ratio of 1.10 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 94% of readings from the past year. In other words, there's been an unusually healthy appetite for long puts of late. 

Published on Mar 1, 2022 at 7:54 AM
  • Buzz Stocks

Today's Stock Market News & Events: 3/1/2022

by Schaeffer's Digital Content Team

Today investors will transition into the new month with data on construction spending. The ISM manufacturing index and the Markit manufacturing PMI are also due out. 

The following public companies are slated to release corporate earnings today, March 1:

Acushnet Holdings Corp. (NYSE:GOLF -- $43.80) designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally. Acushnet will report its Q4 earnings of 2021 before the open today.

AutoZone Inc. (NYSE:AZO -- $1,863.39) retails and distributes automotive replacement parts and accessories. AutoZone will report its Q4 earnings of 2021 before the open today.

Baidu Inc. (NASDAQ:BIDU -- $152.44) provides internet search services in China. Baidu will report its Q4 earnings of 2021 before the open today.

Bank of Montreal (NYSE:BMO -- $113.90) provides diversified financial services primarily in North America. Bank of Montreal will report its Q4 earnings of 2021 before the open today.

The Bank of Nova Scotia (NYSE:BNS -- $72.34) provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. Bank of Nova Scotia will report its Q4 earnings of 2021 before the open today.

Clarivate plc (NYSE:CLVT -- $14.98) provides structured information and analytics for discovery, protection, and commercialization of scientific research, innovations, and brands. Clarivate will report its Q4 earnings of 2021 before the open today.

Domino's Pizza Inc. (NYSE:DPZ -- $432.21) operates as a pizza company in the United States and internationally. Domino's Pizza will report its Q4 earnings of 2021 before the open today.

Epizyme Inc. (NASDAQ:EPZM -- $1.49) discovers, develops, and commercializes novel epigenetic medicines for patients with cancer and other diseases in the United States. Epizyme will report its Q4 earnings of 2021 before the open today.

Federal Signal Corp. (NYSE:FSS -- $36.11) designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. Federal Signal will report its Q4 earnings of 2021 before the open today.

Hilton Grand Vacations Inc. (NYSE:HGV -- $51.86) develops, markets, sells, and manages vacation ownership resorts primarily under the Hilton Grand Vacations brand. Hilton Grand Vacations will report its Q4 earnings of 2021 before the open today.

Hostess Brands Inc. (NASDAQ:TWNK -- $21.54) develops, manufactures, markets, sells, and distributes snack products in the United States. Hostess Brands will report its Q4 earnings of 2021 before the open today.

Interface Inc. (NASDAQ:TILE -- $13.05) designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. Interface will report its Q4 earnings of 2021 before the open today.

The J.M. Smucker Co. (NYSE:SJM -- $134.75) manufactures and markets branded food and beverage products worldwide. J.M. Smucker will report its Q4 earnings of 2021 before the open today.

Kohl's Corp. (NYSE:KSS -- $55.62) operates as a retail company in the United States. Kohl's will report its Q4 earnings of 2021 before the open today.

Manchester United plc (NYSE:MANU -- $13.45) owns and operates a professional sports team in the United Kingdom. Manchester United will report its Q4 earnings of 2021 before the open today.

New Fortress Energy Inc. (NASDAQ:NFE -- $27.59) operates as an integrated gas-to-power infrastructure company, provides energy and development services to end-users worldwide. New Fortress Energy will report its Q4 earnings of 2021 before the open today.

Perrigo Company plc (NYSE:PRGO -- $35.52) provides over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to prevent or treat conditions that can be self-managed. Perrigo will report its Q4 earnings of 2021 before the open today.

RadNet Inc. (NASDAQ:RDNT -- $24.67) provides outpatient diagnostic imaging services in the United States. RadNet will report its Q4 earnings of 2021 before the open today.

Sotera Health Co. (NASDAQ:SHC -- $21.87) provides sterilization, and lab testing and advisory services to the medical device, pharmaceutical, and food products industries in the Americas, Europe and Asia. Sotera Health will report its Q4 earnings of 2021 before the open today.

Target Corp. (NYSE:TGT -- $199.77) operates as a general merchandise retailer in the United States. Target will report its Q4 earnings of 2021 before the open today.

The Wendy's Co. (NASDAQ:WEN -- $22.74) operates as a quick-service restaurant company. Wendy's will report its Q4 earnings of 2021 before the open today.

Xenia Hotels & Resorts Inc. (NYSE:XHR -- $18.54) is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. Xenia Hotels will report its Q4 earnings of 2021 before the open today.

1stdibs.com Inc. (NASDAQ:DIBS -- $10.95) operates an online marketplace for vintage, antique, and contemporary furniture, home decor, jewelry, watches, art, and fashion products worldwide. 1stdibs.com will report its Q4 earnings of 2021 after the close today.

AMC Entertainment Holdings Inc. (NYSE:AMC -- $18.86) engages in the theatrical exhibition business. AMC Entertainment will report its Q4 earnings of 2021 after the close today.

B&G Foods Inc. (NYSE:BGS -- $29.60) manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. B&G Foods will report its Q4 earnings of 2021 after the close today.

Celsius Holdings Inc. (NASDAQ:CELH -- $63.89) develops, markets, distributes, and sells functional calorie-burning fitness beverages in the United States and internationally. Celsius will report its Q4 earnings of 2021 after the close today.

Domo Inc. (NASDAQ:DOMO -- $44.50) operates a cloud-based platform in the United States. Domo will report its Q4 earnings of 2021 after the close today.

First Solar Inc. (NASDAQ:FSLR -- $75.29) provides photovoltaic (PV) solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. First Solar will report its Q4 earnings of 2021 after the close today.

Grocery Outlet Holding Corp. (NASDAQ:GO -- $27.81) owns and operates a network of independently operated stores in the United States. Grocery Outlet will report its Q4 earnings of 2021 after the close today.

Health Catalyst Inc. (NASDAQ:HCAT -- $27.12) provides data and analytics technology and services to healthcare organizations. Health Catalyst will report its Q4 earnings of 2021 after the close today.

Inseego Corp. (NASDAQ:INSG -- $4.71) engages in the design and development of fixed and mobile wireless solutions, industrial Internet of Things (IIoT), and cloud solutions for large enterprise verticals, service providers, small and medium-sized businesses, governments, and consumers worldwide. Inseego will report its Q4 earnings of 2021 after the close today.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ -- $137.42) identifies, develops and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. Jazz Pharmaceuticals will report its Q4 earnings of 2021 after the close today.

Nordstrom Inc. (NYSE:JWN -- $20.74) provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. Nordstrom will report its Q4 earnings of 2021 after the close today.

Plug Power Inc. (NASDAQ:PLUG -- $25.29) provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe. Plug Power will report its Q4 earnings of 2021 after the close today.

Purple Innovation Inc. (NASDAQ:PRPL -- $6.02) designs and manufactures mattresses, pillows, and cushions. Purple Innovation will report its Q4 earnings of 2021 after the close today.

REGENXBIO Inc. (NASDAQ:RGNX -- $26.21) provides gene therapy product candidates to deliver genes to cells to address genetic defects or to enable cells in the body to produce therapeutic proteins or antibodies that are intended to impact disease. REGENXBIO will report its Q4 earnings of 2021 after the close today.

Repay Holdings Corp. (NASDAQ:RPAY -- $17.27) provides integrated payment processing solutions to industry-oriented markets. Repay Holdings will report its Q4 earnings of 2021 after the close today.

Ross Stores Inc. (NASDAQ:ROST -- $91.39) operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands. Ross Stores will report its Q4 earnings of 2021 after the close today.

Salesforce.com Inc. (NYSE:CRM -- $210.53) develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. Salesforce.com will report its Q4 earnings of 2021 after the close today.

Sarepta Therapeutics Inc. (NASDAQ:SRPT -- $76.61) focuses on the discovery and development of RNA-targeted therapeutics, gene therapy, and other genetic therapeutic modalities for the treatment of rare diseases. Sarepta Therapeutics will report its Q4 earnings of 2021 after the close today.

SoFi Technologies Inc. (NASDAQ:SOFI -- $11.45) operates an online platform that provides financial services. SoFi Technologies will report its Q4 earnings of 2021 after the close today.

TTEC Holdings Inc. (NASDAQ:TTEC -- $79.50) focuses on the design, implementation, and delivery of transformative customer experience for various brands. TTEC Holdings will report its Q4 earnings of 2021 after the close today.

Urban Outfitters Inc. (NASDAQ:URBN -- $27.51) engages in the retail and wholesale of general consumer products. Urban Outfitters will report its Q4 earnings of 2021 after the close today.

Vuzix Corp. (NASDAQ:VUZI -- $5.66) designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices for consumer and enterprise markets in North America, the Asia-Pacific, Europe, and internationally. Vuzix will report its Q4 earnings of 2021 after the close today.

ContextLogic Inc. (NASDAQ:WISH -- $2.37) operates as a mobile ecommerce company in Europe, North America, South America, and internationally. ContextLogic will report its Q4 earnings of 2021 after the close today.

ZipRecruiter Inc. (NASDAQ:ZIP -- $19.98) operates an online employment marketplace that connects job seekers and employers. ZipRecruiter will report its Q4 earnings of 2021 after the close today.

Looking ahead to tomorrow, the Federal Reserve's beige book will come out in the afternoon of Wednesday, while the ADP employment report will be out bright and early that day.

All economic dates listed here are tentative and subject to change.

Published on Feb 28, 2022 at 3:05 PM
  • Buzz Stocks

11 Marijuana Stocks on Fire to Close February

by Schaeffer's Digital Content Team

Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks, and look at how the cannabis industry is evolving as we make our way through 2022.

The world of cannabis saw massive growth in 2021 and 18 states plus D.C. officially legalized the adult-use of cannabis by the end of the year. Thirty-one states plus D.C. had taken decriminalization measures regarding cannabis by the end of 2021. As of late 2021, marijuana is classified at the U.S. federal level as a Schedule I substance  under the Controlled Substances Act. In other words, cultivating, distributing, and possessing cannabis remains illegal at the federal level.

In addition, here is a quick summary of the major (and action-worthy!) cannabis stock news from this week:

Subsidiary of cannabis name, Tilray Brands, Inc (NASDAQ:TLRY), SweetWater Brewing Company, LLC, announced on Monday that it will - in partnership with Columbia Distributing - continue its expansion in the western United States. SweetWater Brewing will launch into Washington and Oregon, shortly following its launch in California earlier in February.

Flora Growth Corp. (NASDAQ:FLGC) could be the first cannabis cultivator worldwide to obtain approvals for its filed 23 cannabinoid food and beverage products from the Instituto Nacional de Vigilancia de Medicamentos y Alimentos (INVIMA) in Colombia. These products include juices, sparkling seltzers, gummies, and healthy snack foods. According to Flora Growth, “We are incredibly excited by the government's decision to permit cannabinoid food and beverage products and look forward to bringing these cannabis wellness products to consumers in Colombia and around the globe."

In two major announcements this week, High Tide Inc. (NASDAQ:HITI) launched a new cannabis delivery service throughout Canada and surpassed a major milestone in Cabana Club loyalty membership volume. First, with the launch of Delivery on Demand as a feature at select Canna Cabana locations, customers get guaranteed two-hour delivery for $9.99 CAD. On Wednesday, HITI followed up this new customer-focused feature launch with an announcement that its Cabana Club loyalty program had surpassed 420,000 members, making 71% growth in the program since launch in mid-October 2021. High Tide will be offering a random member a prize package worth $42,000 CAD.

Clever Leaves Holdings Inc. (NASDAQ:CLVR) confirmed that it will be expanding its partnership with Cansativa GmbH following Cansativa’s announcement of a series B fundraise of up to $15 million. Through this fundraise, Cansativa will be put into a very strong position within the German medical marijuana market and positioned strongly for the potential legalization of recreational marijuana. 

Through an agreement with Kaos Capital, HEXO Corp. (NASDAQ:HEXO) will refresh HEXO's board of directors. At HEXO's upcoming shareholders meeting on March 8, the new board will be up for election. Included in the newly designed board of directors will be Mark Attanasio, Rose Marie Gage, Vincent Chiara, Hélène F. Fortin, Rob Godfrey, Peter Montour and William Montour. In addition, HEXO plans to appoint another board member following the shareholders meeting.

On behalf of cbdMD (NASDAQ:YCBD), the Natural Products Association filed a Citizen's Petition with the Food and Drug Administration requesting that the FBA remove the CBD drug exclusion and review the company's safety and quality data. If this drug exclusion is removed, cbdMD will be able to share the benefits of its CBD products with consumers and majorly expand sales through mass distribution channels. Since 2018, the FDA has left the CBD market in a grey area and, by providing clarification, the CBD market could create and enforce standards while expanding competition within the market.

A major breakthrough was announced this week by 22nd Century Group, Inc. (NASDAQ:XXII) and KeyGene that the partnership had successfully transformed the cannabis plant genome using proprietary plant transformation, regeneration technology and clear protein expression by the introduced genes. In addition to this new capability, XXII has exclusive access to the gene-editing capabilities as they apply to cannabis. According to 22nd Century Group, "I cannot emphasize enough what an enormous achievement it is for our company to have cracked the code to show proof of genome transformation in the hemp/cannabis plant. This is the holy grail in plant science and places us in a commanding leadership position in the race to secure patents and other valuable intellectual property in the emerging hemp/cannabis genetics field."

Cannabis-centric real estate name, Innovative Industrial Properties, Inc. (NYSE:IIPR), released Its Q4 of 2021 financial results this week. Total revenue of over $204 million marked a 75% increase year-over-year and dividend declarations of $5.72 per share to common stockholders marked a 28% increase compared to 2020.
 
Cannabis technology provider, WM Technology, Inc. (NASDAQ:MAPS), released its Q4 of 2021 financial results this week. MAPS delivered largest-ever quarterly revenue of over $54 million in Q4, marking a 22% increase year-over-year. Monthly active users increased 57% year-over-year and average monthly paying clients increased 23% year-over-year. According to WM Technology, "We believe our growth in the current environment underscores the value we continue to deliver to our clients and is evidence of how they fundamentally understand the importance of Weedmaps to grow their businesses."
 

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) released its Q4 of 2021 financial results this week, too. ARNA delivered an increased net loss of over $155 million in the fourth quarter. The financial results did include much to get excited about, but the corporate updates were more promising. Just in December, Pfizer Inc. (NYSE:PFE) announced its plan to acquire Arena following announcements of Arena's research milestones in treating Crohn's disease, Raynaud's phenomenon, and ulcerative colitis.

FSD Pharma Inc. (NASDAQ:HUGE) announced it had entered a definitive agreement to sell its former cannabis processing facility in Ontario as well as the 64 acre property where the facility is located. The purchaser will pay $12.9 million for the facility and property in a transaction expected to close on May 31.

 

Published on Feb 28, 2022 at 2:54 PM
  • Earnings Preview

The shares of Zoom Video Communications Inc (NASDAQ:ZM) are up 4.7% at $131.18 this afternoon, as investors gear up for the company's fourth-quarter earnings report, which is due out after the close this evening. 

The stock has a ways to go if it wants to work off its near 30% year-to-date deficit, and even deeper 65% year-over-year loss. In fact, the stock is only two sessions removed from a two-year low of $114.26, while recent pressure at the 20-day moving average continues to loom. 

zm chart feb 28

Analysts sentiment, meanwhile, is split, with nine calling ZM a "buy" or better, and 12 saying "hold." On the other hand, the 12-month consensus price target of $271.35 is more than double the stock's current levels. 

Options traders are chiming in ahead of the event, with bulls and bears neck-and-neck. So far, 40,000 calls and 40,000 puts have exchanged hands, which is three times what's typically seen at this point. The most popular contract is the weekly 3/4 80-strike put, where positions are being sold to open, followed by the 100-strike put in the same weekly series where positions are being bought to open. 

Looking back, there's been a penchant for bearish bets. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio of 1.13 stands higher than all but 4% of readings from the past year. This means options traders are picking up puts at a quicker-than-usual clip. 

Short interest is also on the rise, up 18.7% in the last two reporting periods. The 11.53 million shares sold short make up 5.4% of the stock's available float. 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!

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