VIAC Moves Higher Following Lofty Analyst Upgrade

The security sports attractively priced premiums at the moment

Digital Content Manager
Apr 7, 2021 at 11:01 AM
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The shares of CBS Corporation (NASDAQ:VIAC) are up 1.2% to trade at $44.87 this morning, after Wolfe Research upgraded the media concern to "outperform" from "peer perform." The analyst in coverage said the security is attractively valued, particularly following its dramatic dip, when VIAC fell over 30% due to the pricing of its $3 billion stock offering. News of forced liquidation from Hwang's Archegos Capital Management also put immense pressure on VIAC and its sector peers in late March, though it looks like Wall Street has already moved on, with many media names rebounding nicely. 

Prior to that negative price action, CBS Corporation stock soared to a March 15 record high of $101.97. A number of massive bear gaps knocked the security all the way below the once-supportive 20-day moving average, though the $42 level stepped in as a floor to contain further losses. Longer term, VIAC carries an impressive 211.1% year-over-year lead.

The brokerage bunch was pessimistic towards the security coming into today, with 16 of the 19 analysts in question carrying a tepid "hold" or worse rating, while three said "buy" or better. However, the 12-month consensus price target of $57.04 is a 24.5% premium to current levels. 

Meanwhile, short sellers have already started to hit the exits, though there is still plenty of pessimism left to be unwound. Short interest fell 2.6% in the most recent reporting period, yet the 102.56 million shares sold short still account for a hefty 18.9% of the security's available float, or over a week's worth of pent-up buying power. 

Finally, now looks like a good opportunity to weigh in on VIAC's next move with options. The security's Schaeffer's Volatility Index (SVI) of 66% stands in the 8th percentile of its annual range, meaning CBS stock sports affordably priced premiums at the moment.

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