KBR Stock Falls Despite Huge Military Contract

Short interest has been rising on KBR

by Josh Selway

Published on Mar 25, 2019 at 10:29 AM

The shares of KBR, Inc. (NYSE:KBR) are trading down 0.6% at $18.16, despite news the company won a nearly $96 million contract to supply cybersecurity and engineering services to the U.S. military. This just extends the selling seen on Friday that pushed the equity down 4.6% and below the 200-day moving average, which had briefly stepped up as support. Overall, the security has a year-over-year lead of 13.7%, but is still looking up at its November high of $22.21.

Meanwhile, options data suggests some traders were expecting a breakout from KBR stock. During the past 10 days there was a notable increase in open interest at the May 20 call, and buy-to-open activity was detected there, meaning these traders are betting on the security rising above $20 in the coming weeks. It's worth pointing out how this round number level acted as a ceiling earlier this month.

The sentiment setup among analysts is mixed, almost evenly split between "strong buy" or "buy" ratings and "holds." However, the average 12-month price target stands up at $22.91, suggesting brokerage firms see upside ahead for the shares.

On the other hand, short interest has been ticking higher, increasing 7.9% in the last two reporting periods. Overall, the 4.8% of KBR's float sold short would take 3.5 days for short sellers to buy back, based on average daily trading volumes.


START YOUR SATURDAY SMARTER.


The best of Schaeffer's market analysis in a 5-minute weekly read.


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


16-Hour "Jump Trades" Unlock New Profit Potential
Click to continue to advertiser's site.
Why Dermira, Menlo Therapeutics are Red-Hot Today
The broader stock market is much lower this afternoon, though
Banks, Blue Chips Kick Off Earnings Season
Dow earnings are expected to come in droves again next week
16-Hour "Jump Trades" Unlock New Profit Potential
Click to continue to advertiser's site.