The information and analysis services stock was oversold going into today
IHS Markit Ltd (NYSE:INFO) is up 15.1% to trade at $52.43 this morning following an earnings beat. The information services company reported adjusted first-quarter profits of 66 cents per share, higher than Wall Street's anticipated 64 cents per share. The reported revenue of 1.08 billion was right on par with IHS Markit's estimates.
Prior to today, IHS Markit stock's freefall coincides with the broad market sell-off. INFO is still down 23% year-to-date, and hit an annual year low of $44.82 yesterday, March 23. However the stock sports a 14-day Relative Strength Index (RSI) of 23 -- in "oversold" territory, suggesting today's bounce could have already been in the works.
Analysts have yet to chime in, but most sit on the bullish side already, with nine out of 15 sporting a "strong buy" or "buy" and five with a tepid "hold." Plus, the current 12-month consensus price target is $74.94, a whole 65.1% premium to current levels.
INFO hasn't been seeing particularly high options volume, but in the last 10 days, puts have outweighed calls two to one as INFO has a 10-day put/call ratio of 2.06 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).