Fisker Stock Eyes Bounce After Long-Term Manufacturing Deal

The stock could benefit from a short squeeze, too

Digital Content Manager
Jun 17, 2021 at 9:26 AM
facebook twitter linkedin

The shares of Fisker Inc (NYSE:FSR) are up 2.6% at $18.20 ahead of the bell this morning, following news that the electric vehicle company inked a long-term manufacturing contract with Magna International (MGA) to build the Fisker Ocean electric SVU. Building of the vehicle will begin in November 2022. 

The stock suffered a dramatic slide from its March 2 record high of $31.96, tumbling all the way to the $10 level to notch a six-month low in mid-May. The security rallied off this level into June, but found rejection at the $19 mark late last week. Investors shouldn't fret just yet though, the 80-day moving average looks to have caught most of this week's pullback, and FSR is still up over 71% year-over-year. 

FSR could benefit from a short squeeze. Short interest climbed 21.1% in the last two reporting periods, and now the 44.86 million shares sold short make up 32% of the stock's available float. It would take exactly three days to cover these pessimistic positions at FSR's average daily pace of trading. 

Analysts, on the other hand, are mostly optimistic. Of the seven in coverage, five say "buy" or better, and two a "hold." Plus, the 12-month consensus price target of $23.22 is a 27.3% premium to current levels. 


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