HOG Screeches to a Halt Amid Job Cuts

Analyst sentiment surrounding the stock is tepid at best

Deputy Editor
Jun 26, 2020 at 9:29 AM
facebook twitter linkedin

Harley-Davidson Inc (NYSE:HOG) announced last night that it would cut 140 of its jobs in the U.S., according to a representative for the company. The job cuts will affect 90 workers at the motorcycle manufacturer's New York plant in Pennsylvania and 50 at its Tomahawk facility, located in Wisconsin. HOG is down 0.7% at $24.25 in response to the news. 

Since bottoming out in March, the equity has been chopping higher, with support at the 30-day moving average containing most of its pullbacks. This most recent leg up, however, was captured by HOG's descending 110-day moving average, which guided the shares back down the chart, keeping Harley-Davidson stock at a 34.4% year-to-date deficit, coming into today. 

The majority of analysts are approaching HOG with caution. Of the 12 in coverage, nine call it a "hold," compared to only two saying "buy" or better. Meanwhile, the consensus 12-month price target of $24.11is just a 1.2% discount to last night's close. 

Options players are singing a different tune, though. HOG sports a 10-day call/put volume ratio of 2.84 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 92% of readings from the last year, suggesting a much healthier appetite for long calls than what is typically seen. 


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