Tupperware Stock Pops After Earnings, Revenue Beat

Options traders are chiming in at eight times the typical volume

Assistant Editor
May 5, 2021 at 10:49 AM
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The shares of Tupperware Brands Corporation (NYSE:TUP) are surging, up 9.4% to trade at $26.26 at last check, after the company reported first-quarter earnings of 82 cents per share, which is higher than analysts' expectations of 54 cents. The storage name also posted a revenue beat, with CEO Miguel Fernandez noting the expanded use of digital sales tools and strength in distribution channels.

TUP has had a tough time on the charts lately, facing pressure from the 40-day moving average, as well as the $28 level. However, the stock seems to have found a floor at the $23 region, and today's pop has the stock well that 40-day trendline. Year-to-date, the equity is down 20.5%. 

Analysts are split on Tupperware stock. Of the four in coverage, two carry a "strong buy" rating, while two say "hold." Meanwhile, the 12-month consensus price target of $40.33 is a 57.1% premium to current levels. 

Over in the options pits, TUP is seeing some interesting bearish symmetry, as the security's 10-day put/call volume ratio of 0.84 sits in the 84th percentile of its annual range at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This means that while calls outnumbered puts on an absolute basis, options traders have had a healthy appetite for puts of late. 

Today's news has options traders chiming in at eight times the average intraday amount. So far, 1,671 calls and 1,798 puts have crossed the tape, with new positions being opened at the May 30 call, which is seeing the most activity.

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 93 out of 100. This means Tupperware stock has exceeded option traders' volatility expectations during the past year.

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