Q1 Miss Puts PVH in Bad Spot

Calls are still preferred among options traders

Assistant Editor
Jun 12, 2020 at 10:32 AM
facebook twitter linkedin


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. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners