Q3 Earnings Beat Gives Brewing Stock a Boost

The stock neared its 11-year low in yesterday's trading

Deputy Editor
Oct 29, 2020 at 9:51 AM
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The shares of Molson Coors Beverage Company (NYSE:TAP) are up 3.3% at $34 at last check, after posting a third-quarter earnings beat. After three-straight days of losses, TAP was nearing its Sept. 24, 11-year low of $32.12 in yesterday's trading. With the stock back at the $34 level after today's pop, it's worth noting that this region has been a floor of support since mid-September. Regardless, year-to-date, the equity is down around 39%.

The brokerage bunch is leaning bearish on Molson Coors stock, with eight of the 12 analysts in coverage at a "hold" or worse rating. The options pits, however, seem to be much more confident. Albeit amid lighter absolute volume, in the past 10 days, 17.23 calls have been bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 97% of readings from the past year, revealing a stronger-than-usual penchant for calls. 

Furthermore, the 10.67 million shares sold short still account for 6.18% of the stock's available float. In other words, it would take five days to buy back these bearish bets at TAP's average pace of trading. 

 

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