Canada Goose Stock Migrates Lower Following Q1 Results

The stock is down 36.5% for the year

Deputy Editor
Aug 11, 2020 at 10:24 AM
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The shares of Canada Goose Holdings Inc (NYSE:GOOS) are down 8.06% at $22.81 at last check, despite reporting narrower-than-expected fiscal first-quarter losses, as well as revenue that beat estimates. The company also lowered its current-quarter revenue forecast, citing a significant drop in department store sales, and said it would be cutting costs by limiting the number of stores opened and slashing overall production. 

On the charts, GOOS is dipping back below its 140-day moving average, which has served as a long-term area of resistance. The recently resistant $24 is also, once again, keeping a lid on the shares. Year-to-date, the stock is down 36.5%. 

Analysts are looking bullish, with six out of the eight in coverage sporting a "strong buy" rating, with one "hold," and one "sell." Meanwhile, the 12-month consensus target price of $30.80 is a 31.6% premium to current levels. 

Options traders are echoing this sentiment to a milder degree, as GOOS' 50-day call/put volume ratio of 2.55 at the Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 77% of all readings from the last year. This shows long calls being picked up at a faster-than-usual clip. 

Meanwhile, short interest has started to fall off, down 1.9% during the last reporting period, though these bears are still firmly in control. The 9.79 million shares sold short still account for 17.1% of the stock's available float, and would take nearly a week to buy back at its average pace of trading. 

Circling back, Canada Goose's normally quiet options pits are bursting with activity. Already, 1,501 calls and 936 puts have crossed the tape -- five times the intraday average. The 8/14 22.50-strike put is the most popular, followed by the monthly August 21 call. 

 

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