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. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1