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GOOS Stock Deflates on Slashed Full-Year Forecast

The equity is down more than 40% in the last 12 months

Digital Content Manager
Feb 7, 2020 at 9:07 AM
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Canada-based apparel concern Canada Goose Holdings Inc (NYSE:GOOS) is down 7.8% at $30.70 in electronic trading -- set for its lowest open since late-2017 -- following a lackluster turn in the earnings confessional this morning. While the down coat creator posted fiscal-third-quarter earnings and revenue that exceeded analysts' estimates, it also slashed its annual revenue and profit forecasts for 2020, citing coronavirus-related headwinds. 

On the charts, GOOS has chopped lower since the second half of 2019, when it's attempt to close its late-May bear gap ran out of steam just below its 170-day moving average. The trendline has since served as a descending ceiling on the charts, guiding the security into a 40% year-over-year loss coming into today. 

Analysts have yet to chime in on GOOS' move, but there's still room for downgrades, with two of the five in coverage calling the equity a "strong buy," and not a single "sell" on the books. Meanwhile, the consensus 12-month price target of $48.60 is a 57.7% premium to last night's close. 

Short sellers are likely cheering today. In the past reporting period short interest has surged 30.7%. This puts short sellers firmly in control, with the 18.67 shares sold short representing a whopping 32% of the stock's available float, or eight days of trading at the stock's average daily pace. 

 

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