Restaurant Stock Gets Monster Price Target

DIN stock is heavily shorted, however

Feb 1, 2019 at 10:03 AM
facebook twitter linkedin


Applebee's and IHOP parent Dine Brands Global Inc (NYSE:DIN) is in focus this morning following a very bullish note out of Wedbush. The brokerage firm started coverage on the equity with an "outperform" rating and $120 price target. DIN shares were last seen trading up 2.9% at $78.50, so this price target is calling for a nearly 53% rise in the security. It also represents record-high territory for DIN, which hit an all-time peak of $114.23 back in 2015. 

To gain back to these levels, Dine Brands will need to conquer its 50-day moving average that has been acting as resistance so far this year. The shares are also trading in line with another closely watched trendline in the 200-day moving average, while their late-December pullback was neatly contained by the 320-day.

Short sellers have been jumping on DIN, however. The number of shorted shares rose by 16.7% in the last reporting period to 2.13 million, accounting for 12.3% of the total float. Going by average daily trading volumes, it would take these bears more than a week to cover their positions.

Meanwhile, other analysts share Wedbush's upbeat outlook. While there are only three other brokerage firms in coverage, they all recommend buying Dine Brands stock. Moreover, the average 12-month price target stands up at $108.80.

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners