Dillard's Stock Takes a Tumble After Earnings, Greenlight Exit

Hedge fund Greenlight Capital dissolved its stake in DDS

by Lillian Currens

Published on May 16, 2019 at 10:05 AM

The shares of retail stock Dillard's Inc (NYSE:DDS) are way lower this morning, after the firm reported first-quarter revenue below expectations. Plus, hedge fund Greenlight Capital dissolved its stake in the department store. As such, DDS shares have dropped 9.7% to $57.26 as a result.

Dillard's stock today is now dangerously close to its Dec. 24 low of $55.73. Plus, DDS has taken a beating since gapping lower in late April, and is pacing for its worst month since late August 2017, down more than 16% in May so far.

Analysts are already jumping on the stock with bear notes, too. Wedbush just hit DDS with a price target cut to $54 from $65, while J.P. Morgan Securities slashed its target to $56 from $57. These negative notes are just more of the same for Dillard's, though. Currently, the retailer has one "hold" and four "sell" or worse ratings, and not a single "buy" on the books. What's more, the consensus 12-month target price of $56 is at a slight discount to current levels.

Several recent option buyers are likely kicking rocks today, as bulls were jumping on the security ahead of earnings. DDS sports a 10-day call/put volume ratio of 1.54 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 83rd percentile of its annual range, suggesting that calls have been bought to open over puts at a much quicker clip than usual in the past two weeks.

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