S&P 500 Addition Bolsters Struggling LVS Stock

The stock has been stuck in a downtrend

Deputy Editor
Sep 27, 2019 at 9:35 AM
facebook twitter linkedin

It was announced last night that casino name Las Vegas Sands Corp. (NYSE:LVS) will be joining the S&P 500 Index (SPX), replacing Nektar Therapeutics (NKTR), which is headed to the S&P MidCap 400 Index (MID), prior to the open next Thursday, Oct. 3. The equity is up 4.7% at $58.48 in response, set for its highest close in over a week, and its biggest one-day jump since early July. 

The stock has been sliding on the charts since running out of steam just below its 320-day moving average -- finishing seven of the last eight sessions in the red. The stock managed a bounce off the round $55 region, however, and still boasts a roughly 12.4% year-to-date gain.

For the most part, the brokerage bunch has remained on the sidelines, with the majority of 11 analysts in coverage calling the stock a "hold." On the other hand, the consensus 12-month price target sits all the way up at $69.78 -- a level not touched since August 2018. 

Meanwhile, short-term options traders are incredibly call-skewed on LVS, as evidenced by its Schaeffer's put/call open interest ratio (SOIR) of 0.52, which sits in the low 4th percentile of its annual range. In the front-month series, peak open interest is found at the October 60 call, where it looks like most of the contracts were purchased.

Grab your FREE Eternal Contrarian report!


Special Offers from Schaeffer's Trading Partners