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PINS Bombarded by Option Traders, Analysts After Blowout Earnings

The equity just nabbed a new record high, too

Digital Content Manager
Oct 29, 2020 at 10:46 AM
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Pinterest Inc (NYSE:PINS) is already up an impressive 39.5% to trade at $68.82, after the social media company posted third-quarter earnings and revenue that handily beat analysts' estimates. The company also forecast 60% sales growth for its current quarter, citing a bounce in ad revenue, thanks in part to businesses redirecting their spending to its platform following July's social media ad boycott. 

The equity is now trading at a new record high, eclipsing recent pressure near the $54 level, which is home to its previous mid-October peak. And should these gains hold, Pinterest stock could be headed for its biggest one-day jump on record too. For the year, the security is now up 265.3%.

PINS has received an overwhelming amount of analyst attention this morning, with no fewer than 12 brokerages rushing in with price-target hikes. J.P. Morgan Securities lifted its price target all the way to $75 from $57, and upgraded the stock to "overweight" from "neutral." Coming into today, the majority of analysts were already bullish on the stock, with 11 of the 19 calling it a "buy" or better. Meanwhile, the 12-month consensus price target of $60.14 now sits at a 12.5% discount to current levels, which could lead to even more bull notes, should PINS maintain its momentum. 

The options pits are going wild over PINS, too, with 183,000 calls and 69,000 puts across the board so far -- 12 times what's typically seen, with volume running in the top percentile of its 12-month range. The weekly 10/30 70-strike call is extremely popular, followed by the 65-strike call in the same series, with positions being opened at the former. 

 

 

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