Party City Celebrates an Impressive Third Quarter

The equity is pacing for its best day in months

Deputy Editor
Nov 9, 2020 at 11:24 AM
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The shares of Party City Holdco Inc (NYSE:PRTY) are trading at their highest level since September this morning, up 26% at $2.93, after the party supply retailer posted third-quarter earnings of 10 cents, which bested Wall Street's estimates of a loss of 32 cents per share. The company also posted a 36% jump in digital sales, and a higher-than-expected current-quarter forecast, citing strong results in October, specifically around Halloween. 

Should these gains hold, PRTY could be pacing for its biggest one-day jump since August. Even before today's bear gap though, the security was in rally mode, with a recent jump supported by the 140-day moving average. What's more, the equity is poised for its first close atop the 320-day since its September annual peak, and now sports a year-to-date lead of 26.9%. 

Analysts are still mostly hesitant over PRTY, with four of the five in coverage giving it a "hold" rating, compared to just one "buy." The security could be ripe for some price-target hikes, should this positive price action continue. The consensus 12-month price target of $2.25 is a 23.6% discount to current levels. 

Party City stock's options activity is popping as a result of its third-quarter beat. So far, 6,706 calls and 1,265 puts have crossed the tape -- seven times the intraday average. The November 2.50 call is the most popular, followed by the 3 call in the same monthly series. 

 

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