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Goldman Upgrades Hartford Financial Services

Options traders have been bullish, too

May 29, 2019 at 10:08 AM
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Hartford Financial Services Group Inc (NYSE:HIG) was upgraded to "buy" from "neutral" at Goldman Sachs, which noted the company's valuation is cheaper than some of its biggest rivals. Most analysts share the brokerage firm's enthusiasm, with seven of the 11 in coverage handing out "strong buy" recommendations, versus four "holds." Meanwhile, the average 12-month price target stands up at $59.53, territory not seen since 2008.

There's been bullish activity in the options pits, as well. HIG has a 10-day call/put volume ratio of 16.61, which ranks in the 88th annual percentile, showing an unusual demand for long calls. Traders, whether bullish or bearish, can speculate for a relative bargain at the moment, since the Schaeffer's Volatility Index (SVI) of 19% ranks in the 23rd annual percentile, meaning volatility expectations appear low at the moment.

HIG stock has had a strong few months, sporting a year-to-date lead of 19%. In fact, it touched an annual high of $54.28 a week ago, and was last seen right below here at $52.66. 

 

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