Conn's Post-Earnings Plunge Triggers Short-Sale Restriction

CONN shares are backing down from a test of their 120-day moving average

Managing Editor
Mar 26, 2019 at 9:47 AM
facebook twitter linkedin

Shares of Conn's Inc (NASDAQ:CONN) have reversed their premarket gains, last seen down 6.3% at $22.36, after the company reported a fourth-quarter earnings beat, but fell short of revenue expectations as same-store sales declined 1.4% for the period. Today's post-earnings plunge has CONN stock retreating from a test of resistance at its overhead 120-day moving average, which hasn't been bested on a daily closing basis since Oct. 9. 

As of last night's close, all six analysts covering CONN held "strong buy" recommendations. This sentiment is echoed within the stock's average 12-month price target of $36, which represents more than 50% upside to current levels. Given the equity's sharp reversal, any bearish notes from this group could spark additional selling pressure on the retailer's shares.

Lastly, short interest surged 33.2% during the two most recent reporting periods on CONN, and now represents a healthy 27.2% of the stock's total available float. However, with the shares down more than 10% at their early lows of the session, bears are temporarily restricted from shorting CONN -- which means pessimistic players may turn their attention to the stock's put options in the short term.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!