JD shares are up this morning on reports of restructuring
JD.com Inc (NASDAQ:JD) shares are up 3.3% to trade at $21.83, at last check. Earlier today, it was reported that the Chinese e-commerce giant plans to restructure its JD Mall unit into three departments, according to an internal document cited by the Wall Street Journal. The article said the revamp is a chance to "change the narrative" (subscription required) from the CEO rape allegations that have rattled JD since the summer.
JD is headed for its worst year ever, with shares down almost 50%. The stock has given up roughly half its value since peaking above $44 in June, with recent rebound attempts stalling beneath its 50-day moving average. Still JD has moved off its record low of $19.21, tagged Nov. 23.
Despite the negative spotlight, four analysts still give JD a "strong buy" rating, with the other nine following the stock saying "hold." On the other hand, options traders' pessimism has been stronger than usual, with JD sporting a 10-day put/call volume ratio of 0.74 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 81st percentile of ratings for the year -- indicating that JD puts have been bought to open over calls at a faster-than-usual clip in the past two weeks.