TWNK Tumbles Despite Earnings Beat

Hostess stock is heavily shorted at the moment

Digital Content Manager
May 17, 2021 at 10:25 AM
facebook X logo linkedin


The shares of snack food company Hostess Brands Inc (NASDAQ:TWNK) are faltering this morning, last seen down 1.9% at $15.41, following the firm's first-quarter earnings report. Hostess shared earnings of 20 cents per share, which came in just above analysts' estimates, on $265.42 million in revenue, also topping expectations. 

The stock has been running into a stiff ceiling at the $15.80 mark over the past week, though the 20-day moving average could step in as potential support, since it caught last week's pullback from this aforementioned rejection level. TWNK is up roughly 34% in the past 12 months. 

There isn't much to report by the way of post-earnings analyst chatter, but coming into today the brokerage bunch was overwhelmingly bullish. Of the six covering TWNK, five considered it a "strong buy," with just one lone wolf at a "hold." Plus, the 12-month consensus price target of $17.67 is a 13% premium to current levels. 

Calls have been incredibly popular, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), over 11 calls have been picked up for every one put during the past 10 days.

While calls are still outnumbering puts on an overall basis, the 100 put contracts traded so far represent six times what's typically seen at this point. The two most popular contracts are the May 15 call and the June 17.50 put. 

This optimism isn't reflected everywhere, though. Short sellers have been building their pessimistic positions, with short interest up 10.4% in the last two reporting periods. These 24.96 million shares sold short make up a hefty 22.84% of the stock's available float, and would take over a month to buy back at TWNK's average daily pace of trading. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI