La-Z-Boy announced better-than-expected fiscal second-quarter results
The shares of La-Z-Boy Inc (NYSE:LZB) are up 7.4% at $41.35 at last check, after the recliner maker announced fiscal second-quarter earnings and revenue that outmatched analyst expectations. Furthermore, La-Z-Boy reinstated its dividend of 14 cents per share after nixing it in March as part of its COVID-19 Action Plan.
Today's bull gap has LZB racing past its Nov. 9 record high of $39.86. The equity has posted an impressive rally on the charts since its March lows, with these recent highs helped along by close support at the 30-day moving average. Now, the equity is up 31.1% year-to-date.
Despite the recent rally, there is room for upgrades among the brokerage bunch. Of the three analysts in coverage, two sport a tepid "hold" rating. Meanwhile, the 12-month consensus price target of $43 is just a 3.9% premium to current levels.
Meanwhile, short sellers have been piling on, with short interest up 20.5% during the last reporting period. These bearish bets account for 5.5% of the stock's available float, and would take nearly six days to cover at LZB's average pace of trading.
Lastly, today's news has traders flooding the typically quiet options pits, with options volume pacing for the top percentile of its annual range. So far, 1,657 calls and 503 puts have crossed the tape, which is 29 times what's typically seen at this point. The November 40 call is the most popular, followed by the December 45 call, with new positions being opened at the latter.