LEVI Stock Inches Lower After Earnings

The Wrangler jeans maker reported a decline in American wholesale business

Digital Content Manager
Oct 9, 2019 at 9:22 AM
facebook twitter linkedin


The shares of denim maker Levi Strauss & Co. (NYSE:LEVI) are slightly lower after last night's earnings report. The firm reported third-quarter profits of 31 cents -- beating analysts' estimates of 28 cents per share -- and revenue of $1.45 billion, which also exceeded expectations. LEVI did report a decline in American wholesale business, however, which lead to a 4% drop in profit for the quarter. The stock is down 0.2% at $18.92.

Despite a recent pullback, the equity has been running higher since its mid-August low of $16, with its rising 20-day moving average acting as a recent floor -- a trendline LEVI is testing today. The security has managed to add almost 20% since this bottom, but is still down 15.6% year-to-date. 

Analysts have yet to chime in, but prior to today, the brokerage bunch has been quite bullish. The stock's consensus 12-month target price of $22.71 is at a healthy 19.5% premium to current levels. Plus, all but one of the six analysts in coverage call the security a "strong buy."

Short sellers, on the other hand, have been betting on more downside, with short interest up 23% in the last two reporting periods. The 5.33 million shares sold short represent a solid 12.8% of the stock's available float, too, and would take nearly four days to cover at LEVI's average pace of trading. 

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!