Chemical Stock Gains Momentum After Q3 Beat

To follow, UBS raised its price target to $22 from $19

Deputy Editor
Nov 4, 2020 at 11:15 AM
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The shares of The Chemours Company (NYSE:CC) are up 1% at $21.98 at last check, after the chemical company reported better-than-anticipated third-quarter earnings, as well as revenue just above expectations. The earnings beat sparked a price-target hike from UBS to $22 from $19. 

Now, the equity is testing its footing at the 20-day moving average after several weeks below the trendline. And though CC saw a sharp plummet earlier in the session, the 80-day moving average contained most of these losses, putting the security at a 21.3% year-to-date lead. 

The brokerage bunch is still hesitant, with all five of the analysts in coverage carrying tepid "hold" ratings. Meanwhile, the 12-month consensus price target of $21 is now a 4.4% premium to current levels. 

The options pits, however, are looking much more bullish. CC sports a 10-day call/put volume ratio of 5.71 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of all other annual readings. This means calls are being picked up at a much faster-than-usual rate in the last 12 months. 

Now looks like a good time to weigh in on Chemour stock's next move with options, per the security's Schaeffer's Volatility Index (SVI) of 79%, which sits in the relatively low 13th percentile of all other annual readings. This means the stock sports attractively priced premiums at the moment.


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