Supply chain issues and inflation anxieties are pressuring Kimberly Clark stock
The shares of Kimberly Clark Corp (NYSE:KMB) are down 3.7% at $128.15 this morning, after the firm posted third-quarter earnings that missed analysts' estimates. The consumer goods company also slashed its earnings guidance, noting that its earnings were "impacted by significant inflation and supply chain disruptions." Kimberly Clark's revenue, meanwhile, barely topped expectations.
KMB has seen a choppy year on the charts, and a recent rally off long-term support at the $128 level was quickly squashed by the 30-day moving average. This level has kept a lid on the shares since mid-September, while the year-to-date breakeven area has also emerged as resistance, meaning the equity is now trading at annual lows. Kimberly Clark stock is now down over 5% in 2021, breaking down past the $128 level to trade at new annual lows.
Analysts have remained silent this morning, though sentiment surrounding KMB has already soured. Of the 11 in coverage, just one calls the equity a "strong buy," while eight say "hold" and two say "strong sell." Meanwhile, the 12-month consensus price target of $138.29 is a 9.2% premium to current levels.
Kimberly Clark stock's typically quiet options pits are surging with activity today. So far, 3,032 puts and 3,195 calls have been exchanged, which is 10 times the intraday average. The most popular contract is the weekly 10/29 129-strike put, followed by the 128-strike call in the same weekly series, with positions being opened at both.