More Bull Notes for EXACT Sciences After Earnings

EXACT analysts are still very bullish

May 1, 2019 at 9:55 AM
facebook twitter linkedin


Molecular diagnostics specialist EXACT Sciences Corporation (NASDAQ:EXAS) has received a number of bullish analyst notes this morning after the company's earnings release last night. Canaccord Genuity, SVB Leerink, Jefferies, and Craig-Hallum all lifted their price targets on the stock, with the latter two setting the highest marks at $115, deep into all-time-high territory. This comes after EXACT posted a wider-than-expected loss for the first quarter despite topping revenue expectations.

Analysts were already overwhelmingly bullish on the shares coming into today, with seven of the eight tracking EXAS handing out "strong buy" recommendations. What's more, the average 12-month price target is $111.73. For reference, the stock was last seen trading down 2.7% at $96.02, after hitting a record high $101 earlier this morning.

Options traders, on the other hand, were taking a bearish stance on EXAS ahead of earnings. Specifically, the 10-day put/call volume ratio of 1.56 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 90th annual percentile, showing there's been unusually strong demand for long puts over calls.

There's also been pessimism from short sellers, who control 6.7% of the float, or 5.6 times the average daily trading volume. However, short interest declined by 12.4% in the last reporting period, so maybe these bears are in cover mode -- a potential tailwind for EXACT Sciences.
 

  

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners