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DKS Stock Falls After Earnings Again as 4Q Sales Disappoint

DKS put open interest outweighs call open interest by a wider-than-usual margin

Managing Editor
Mar 13, 2018 at 9:58 AM
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Shares of retailer Dick's Sporting Goods Inc (NYSE:DKS) are falling after the company earlier reported fourth-quarter earnings that slightly topped estimates, though same-store sales and revenue that fell short. The company also stated that in order "to more closely align with industry practices," it will no longer offer quarterly outlooks.

Overall, Dick's stock has had a disappointing year, dropping almost 36% during the past 12 months due to two huge post-earnings bear gaps in May and August. Further, the security has fallen back below the 50- and 80-day moving averages, which have provided support in recent months. At last check, shares of DKS were trading 5.6% lower at $30.72.

Meanwhile, the security's Schaeffer's put/call open interest ratio (SOIR) of 3.01 ranks in just the 90th annual percentile. This low ranking means put open interest outweighs call open interest by a much wider-than-normal margin for options expiring within three months, though much of this activity was from traders selling to open positions.

Analyst sentiment is mixed, with a majority of brokerages following the stock leaning towards the bear's camp. Of the 22 analysts following DKS, 13 currently spore "hold" or "strong sell" recommendations. What's more, the stock's 12-month price target of $35.31 comes in at an 8% premium to current levels.
 

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