Piper Sandler downgraded CPB to "neutral" from "overweight"
Express Inc (NYSE:EXPR) stock is plummeting today, down 11.2% to trade at $6.45, despite the company's strong second-quarter report. The retailer posted earnings of 2 cents per share, which is much higher than analysts' anticipated losses of 30 cents per share, alongside a revenue beat.
Though the reason for this sudden reversal from this morning's pre-market gains is still unclear, part of the negative price action could be a correction from the past week, with the stock fresh off five-straight strong wins. Plus, the security sits firmly in "overbought" territory, as per the stock's 14-day Relative Strength Index (RSI) of 82, meaning the stock was overdue for a short-term drop.
Over the past few months, EXPR has been moving in and out of penny stock territory, though the 120-day moving average caught its furthest pullback to the $4 level. Year-to-date, the retailer is still up an astonishing 620%.
Meanwhile, now could be a good time to weigh in on the security's next move with options. The stock's premiums are cheaper than usual at the moment, per EXPR's Schaeffer's Volatility Index (SVI) of 150%, which sits in the 11th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) reads at a relatively high 86 out of 100, meaning the stock has exceeded option traders' volatility expectations during the past year.