Tiffany Stock Recovers on Upgrade

There's been notable call buying during the past two weeks of trading

Sep 12, 2018 at 9:39 AM
facebook X logo linkedin


The shares of upscale accessories retailer Tiffany & Co. (NYSE:TIF) exploded higher back in May after earnings, eventually peaking at an all-time high of $141.64 in late July, but disappointed with the following quarterly update in August. The stock has struggled in the weeks since, but recently bounced near the round $120 level, roughly where it opened after the impressive earnings report in May. Meanwhile, an analyst at Oppenheimer is expressing confidence in TIF going forward, upgrading their opinion this morning.

Jumping right in, the brokerage firm lifted its rating on the equity to "outperform" from "perform," and hiked its price target to $152 from $145. Analyst Brian Nagel called out the company's new product launches and strengthening international markets, though he added, "We are not necessarily calling bottom in TIF." Overall, Nagel simply sees a better risk/reward outlook for the shares given their recent pullback.

As it stands now, 16 of the 28 analysts tracking Tiffany & Co. have "buy" or "strong buy" ratings, and the average 12-month price target of $140.92 represents a 14.2% premium to yesterday's closing price of $123.37. Sentiment has been pretty bullish in the options pits, too, with call buying more than doubling put buying during the past 10 days at the
 International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Digging deeper, much of this activity occurred at the September 125 and 130 calls, where spread activity occurred back on Aug. 29. Since 5,000 contracts of the 130 calls crossed at the bid price compared to 2,500 contracts that were bought at the 125 strike, it would seem a trader initiated a call ratio spread on TIF, expecting a short-term upside move. So far today, the shares have gained 1.3% to trade at $125.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI