JD.com Shares Fail to Gain After CEO Update

JD shares are in the red today

by Josh Selway

Published on Dec 24, 2018 at 9:51 AM
Updated on Dec 24, 2018 at 9:55 AM

JD.com, Inc. (NASDAQ:JD) was last seen down 7.7% at $19.46, as traders react to news that the company's founder and CEO Richard Liu will not be charged after being accused of rape back in September. JD shares were trading above $30 before the news hit, and wound up hitting an all-time low of $19.21 a month ago.

Meanwhile, option traders' sentiment has shifted since we last looked at the e-commerce giant earlier this month. Specifically, JD's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) has moved up to 0.90. While this shows call buying has remained more popular on an absolute basis, the reading ranks in the 92nd annual percentile, revealing an unusual interest in long puts.

Pessimism has been building elsewhere, too. Short interest rose by 13.7% in the last two reporting periods, and now accounts for 6.9% of the total float. At the same time, it'd take these bears just 2.2 days to cover, based on average daily trading volumes. As for analysts, there are 13 in coverage, and just four recommend buying JD.com. The average 12-month price target sits up at $27.89, however.


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