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HAS Topples Technical Ceilings After Earnings Beat

The company noted a bounce in its TV and film-related businesses

Digital Content Manager
Jul 26, 2021 at 10:22 AM
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The shares of Hasbro, Inc. (NASDAQ:HAS) are up 9.3% at $101.02 this morning, following the toymaker's second-quarter earnings report, which easily topped analysts' expectations. The company noted a bounce in its film and television segments, which includes children's program "Peppa Pig," as well as strength in demand for its "Dungeons & Dragons" tabletop game.

The shares are trading back above their year-to-date breakeven today, after plummeting back below the level earlier this month. Today's pop has helped HAS topple pressure at the $98 region as well, with the stock now sitting at fresh two-year highs. Year-over-year, HAS is up 29.7%. 

Analysts are split on HAS, with five saying "strong buy," and four calling it a tepid "hold." The 12-month consensus price target of $110.29, meanwhile, is a 9.8% premium to current levels. 

An unwinding of pessimism in the options pits could put additional winds at Hasbro stock's back. The equity's Schaeffer's put/call open interest ratio (SOIR) of 2.61 stands higher than all but 1% of readings from the past year. This suggests short-term options traders have rarely been more put-biased. 

The options pits are brimming with activity today. So far, 4,921 calls and 2,435 puts have crossed the tape, which is 24 times the intraday average. Most popular is the October 92.50 put, followed by the 7/30 100-strike call, with new positions being opened at both. Buyers of the latter expect more upside for HAS by the end of the week, when these contracts expire.

 

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