Q1 Miss Puts PVH in Bad Spot

Calls are still preferred among options traders

Deputy Editor
Jun 12, 2020 at 10:32 AM
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The shares of PVH Corp (NYSE:PVH) are falling today, last seen down 2.3% to trade at $51.50, after reporting first-quarter losses and revenue that were well below Wall Street's estimates. Additionally, PVH said it expects revenue to decline even more in the second quarter. As a result, the apparel company received at least three price-target cuts, most notably a cut to $55 from $64 from Wells Fargo.

This sentiment isn't shared by all analysts, however. In fact, J.P. Morgan Securities raised its price target to $45 from $38. This puts PVH's 12-month consensus price target at $55.95 -- a 12.1% premium to current levels. Meanwhile, nine of the 16 analysts in coverage sport a "hold" rating, compared to seven who call PVH stock a "buy" or better. 

In mid-March, PVH hit a 10-year low of $28.40. The equity rebounded 145.8% to close at a three-month high last week, though it lost momentum at its 130-day moving average. Now the once supportive 100-day moving average is acting as resistance, leaving PVH at a 52.4% year-to-date deficit. 

PVH's quarterly report is attracting options players, too. In the first hour of trading, 1,035 calls and 517 puts have crossed the tape -- four times the average intraday amount with volume pacing for the highest percentile of its annual range. The most popular contract is the June 45 call. 

 

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