SIG Stock Dulls After Earnings

The company said it has reopened nearly 1,100 of its stores

Deputy Editor
Jun 9, 2020 at 9:43 AM
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The shares of jewelry name Signet Jewelers Ltd. (NYSE:SIG) are down 11.4% at $14.95 this morning after the firm reported a first-quarter loss of $1.59 per share and revenue of $852.1 million, missing analysts' estimates. Signet said it is accelerating its transformation into a channel-agnostic retailer, completing over 100,000 virtual consultations with customers staying at home during the pandemic. Meanwhile, the Jared parent has opened nearly 1,100 of its stores.

A look back at the charts shows SIG just broke north of pressure at the $11- $12 region, though overhead resistance at the 320-day moving average seems to have thwarted its latest rally attempt last week. The stock is still down over 23% for the year, though it was up 161.6% for the quarter, coming into today. 

Analysts have yet to chime in, though the general sentiment on Wall Street is already overwhelmingly pessimistic. Of the five in coverage, two say "hold," and three say "sell" or worse. Plus, the consensus 12-month price target of $9 is a 46.7% discount to last night's close. 

The options pits have taken a more bullish stance, however, with 2.94 puts picked up for every call at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) during the last 10 weeks. This ratio sits higher than 72% of readings from the past year, suggesting a healthier appetite than usual for long puts of late. 

 

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