Pinterest Lands Bull Note Before First Earnings Release

Investment firm Wellington Management has taken a large stake in Pinterest

May 10, 2019 at 9:54 AM
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Pinterest Inc (NYSE:PINS) this morning received new coverage from Instinet, which gave the social media stock a "buy" rating and $34 price target. This follows a note out of Rosenblatt from Wednesday that put a "neutral" rating on PINS and a $32 price target. The other brokerages that had initiated coverage on the equity also had "hold" recommendations. In other news, Wellington Management has taken a 14.5% passive stake in the company.

The stock was last seen trading up 0.9% at $29, and traded as high as $35.10 on April 30 after opening for public trading at $23.75 on April 18. Pinterest is currently sitting just below its newly formed 10-day moving average, residing near the round $30 mark.

Meanwhile, the company is preparing for its first earnings release next Thursday, May 16. We'll be monitoring how the options market approaches the event. Options trading on Pinterest kicked off a couple weeks back with a heavy focus on calls, and in the 10 days since, more than 19,000 calls have traded on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just around 9,200 puts.

The aforementioned $30 level has been a target of speculators, with peak open interest residing at the weekly 5/24 30-strike call, followed by the May 30 call. Even on the put side the 30 strike has been popular, evidenced by heavy open interest at the June 30 put.

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