PLCE Eyes Five-Month Highs on Price-Target Hike

The equity is coming off its best month since 2003

Digital Content Manager
Dec 1, 2020 at 10:03 AM
facebook twitter linkedin

The shares of clothing company Children's Place Inc (NASDAQ:PLCE) are making a comeback today, up 8.1% at $46.47 at last check, following a price-target hike from Wedbush to $48 from $32. The security is now on track for its highest close in nearly five months. 

In fact, PLCE has enjoyed an impressive climb lately -- now more than double its late-August dip below the $20 region. Support at the 10-day has helped guide the equity higher, while former pressure at the 100-day captured a brief pullback in early November. Plus, Children's Place  stock just came off its best month since 2003, tacking on 70%. 

Should the stock continue its climb, other members of  the brokerage bunch could follow Wedbush's lead. Currently, just two analysts in coverage call it a "strong buy," compared to  five "hold" or worse ratings. Plus, coming into today, the 12-month consensus price target of $40.89 was a 4.9% discount to last night's close. 

A further unwinding of short interest could put some wind at PLCE's back, too. While short interest fell 18.2% during the last two reporting periods, the 5.3 million shares sold short still make up 38.7% of the stock's available float. This means it would take almost four days to  buy back these bearish bets, leaving plenty of room for a short squeeze to propel the shares higher.



If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners