TASER International, Inc. (TASR) Stuns Bears with Big Rally

TASER International, Inc. (TASR) bears got a jolt this morning, but the struggling stock still has more ground to cover

by Elizabeth Harrow

Published on Nov 24, 2015 at 10:25 AM
Updated on Jun 24, 2020 at 10:16 AM

It's been a rough year on the charts for TASER International, Inc. (NASDAQ:TASR). Through Monday's close, the stock was down more than 31% in 2015, woefully underperforming the broader equities market.

As a result, bears have flocked to the stun-gun stock. Short interest accounts for more than 25% of TASR's float, representing 7.1 times the equity's average daily trading volume.

Likewise, options players have been leaning toward bearish bets. The stock's 50-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) arrives in the 97th percentile of its annual range, marking a near-peak of pessimistically-skewed speculation on TASR.

While the stock's grim price action is certainly deserving of this heavy-handed skepticism, TASR is catching a boost today, as some of the weaker bearish hands stampede for the exits. The company announced that it's negotiating the final details of a contract to outfit the London Metropolitan Police Service with its Axon body-worn cameras, sending TASR shares up 4.6% this morning to trade at $19.08. The possibility of this deal going through also earned the stock an upgraded analyst rating last week.

The stock's short-squeeze rally could soon run out of steam, though, as TASR peaked today just shy of the round $20 level -- which is also the site of its descending 20-day moving average. Unless TASER International, Inc. (NASDAQ:TASR) can break out above multiple layers of resistance, the majority of the stock's skeptics are likely to remain firmly entrenched for now.

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