Most analysts are already bullish on HOME stock
At Home Group Inc (NYSE:HOME) received new coverage from Berenberg this morning, with the brokerage firm issuing a "buy" recommendation and $30 price target. HOME shares were last seen trading at $22.81 after gaining ground from their year-to-date low a month ago, helped by reports that the home furnishing company is exploring a possible sale. On a year-over-year basis, however, the stock is down 36.7%.
Despite the dismal technical performance, most Wall Street analysts have remained bullish. There are nine brokerages tracking the equity, and eight of them consider it worth buying. The average 12-month price target is $26.09.
The data out of the options pits is also worth pointing out. At Home's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at a remarkable 204.29, after 1,430 calls were bought to open in the past two weeks, compared to just seven puts. Short interest represents almost 17% of the float, though, so some calls bought to open could be from shorts hedging.
Finally, Berenberg's price target of $30 is notable because this area acted as resistance for HOME stock back in October and November, when the 320-day moving average was also sitting in the region. This closely watched trendline hasn't moved much since, last seen sitting near the $29 level.