Footwear Stock Forges Higher After Earnings

No fewer than eight analysts raised their price targets

Deputy Editor
May 22, 2020 at 10:26 AM
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The shares of Deckers Outdoor Corp (NYSE:DECK) are up 10.7% at $186 at last check, following a positive fiscal fourth-quarter report. The UGG parent reported profits of 57 cents per share, much higher than the anticipated 9 cents per share estimated by analysts, as well as higher-than-expected revenue. Following this, no fewer than eight analysts raised their price targets. Six hiked their estimate to $200, while the highest came from BTIG to $208. 

Staging an impressive rebound off its late-March, two-year lows, DECK recently toppled pressure at the 320-day moving average for the first time since its March 12 bear gap. Today's pop also puts the security firmly atop its year-to-date breakeven -- a level it's been pushing back up against for the better part of this week.  

Analyst sentiment is overwhelmingly bullish, with the 11 in coverage all carrying "strong buy" ratings. Plus, the consensus 12-month price target of $195.50 is still a 5.9% premium to current levels.

This confidence is echoed in the options pits as well. DECK sports a 10-day call/put ratio of 1.94 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), that sits higher than 72% of readings from the past year.

Elsewhere, short interest is in decline, down 7.9% in the last reporting period. There's still room for a short squeeze to push the stock higher, though. The 1.53 million shares sold short still account for 5.5% of the stock's available float, or a little over three days worth of pent-up buying power.  

 

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