DKS Eyes Third Straight Win on Cowen Upgrade

The stock is up almost 30% this month

Digital Content Manager
Jun 24, 2020 at 9:19 AM
facebook twitter linkedin


Athletic retailer Dick's Sporting Goods Inc (NYSE:DKS) is eyeing its third-consecutive win today, should this morning's gains hold, after Cowen and Company upgraded the stock to "outperform" from "market perform" and lifted its price target to $50 from $36. The analyst cited improving allocations of product from big names Nike (NKE) and Adidas, the company's successful shift to curbside pickup, and a strong online presence. At last check, DKS is up 1% to trade at $41.85. 

When we last looked at DKS earlier this month, it was trying to shake off a mostly disappointing earnings report. The security has forged higher since the event, with one mid-June pullback deftly captured by its 20-day moving average. For the month, DKS is up by nearly 30%. 

There are still quite a few analysts not convinced by the equity's recent rally. Coming into today, just six called Dick's Sporting Goods a "strong buy," compared to 12 calling it a "hold" or worse. Plus, the consensus 12-month price target sits at just a 2.6% premium to last night's close. 

Short sellers are still piling on, too. In the last two reporting periods, short interest rose 8.8%. The 15.03 million shares sold short represent almost a quarter of the stock's available float, and would take just about a week to cover at its average daily pace of trading. This could lead to a short squeeze for the security, should some of these bearish bets begin to unwind. 

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!