New "Buy" Rating Can't Boost WWE Stock

WWE options traders have been bullish, too

by Karee Venema

Published on Aug 14, 2019 at 10:10 AM

Rosenblatt Securities initiated coverage on World Wrestling Entertainment, Inc. (NASDAQ:WWE) with a "buy" rating and an $85 price target -- a 27.4% premium to last night's close. The brokerage firm said the entertainment name is an attractive target for those looking to trade the "content is king" theme, and sees a compelling entry point following WWE stock's recent pullback.

Looking closer, the shares have shed 34% since topping out at a record high of $100.45 in late April. And since a late-July rejection in the $78-$76 region -- a ceiling in recent months -- WWE stock is down 16%. Today, the equity is off 0.8% at $66.16 amid stiff broad-market headwinds.

Despite these technical troubles, analysts remain enamored with World Wrestling Entertainment. In fact, Rosenblatt joined seven other brokerage firms with its "buy" rating, compared to just one "hold" recommendation, and not a single "sell." Meanwhile, the average 12-month price target sits all the way up at $97.50.

 This bullish bias is seen in the options pits, too. The October 75 call and 60 put are home to peak WWE open interest, and it looks like one speculator used the options to initiate a synthetic long strategy in late July when the shares were trading near $68.50.

Shorter-term traders have targeted the August 80 call, and data from Trade-Alert points to buy-to-open activity here. If this is the case, the call buyers' goal is for WWE stock to break out above $80 by expiration at the close this Friday, Aug. 16.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Bull Notes For Aramark Stock After Activist Investor Stake
Aramark is one of the best stocks on the NYSE today
Big Sale Boosts TLRD Stock
The company is selling its corporate apparel business for $62 million
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.