DKS to Continue Providing Benefits to Furloughed Workforce

The sporting goods giant is also reducing salaries for top executives

Assistant Editor
Apr 8, 2020 at 9:59 AM
facebook twitter linkedin


After it previously announcing that due to the impact of COVID-19 it was temporarily reducing the salaries of its executives, senior leadership and other teammates, Dick’s Sporting Goods (NYSE:DKS) this morning said it will furlough a significant number of the workforce beginning April 12. The company, however, will continue to provide health benefits. At last check, DKS stock is up 2.6% trading at $24.46.

Today’s surge, along with a slight bump yesterday, has the security pacing toward a third-straight close above its 20-day moving average, a trendline that’s acted as resistance on the charts since late January. DKS still finds itself in a 51.8% year-to-date deficit; however, it is worth noting that the equity just recently bounced back from its lowest level in over a decade at just under the $14 level.

Analysts are leaning bearish on DKS stock. Of the 17 in coverage, 12 sport a “hold” or worse position. However, the stock’s consensus 12-month price target of $33.33 is a 39.8% premium to the stock’s current levels.

DKS stock currently sports a Schaeffer's put/call open interest ratio (SOIR) of 1.07 sits in the elevated 91st percentile of its annual range. In other words, short-term options players have rarely been more put-heavy during the past 12 months.

Bernie's Best Stock Bets for Summer 2021

1608308875

 




 
Special Offers from Schaeffer's Trading Partners