Target Stock Plummets Despite Blowout Earnings

Year-over-year, TGT remains up over 54%

Digital Content Manager
Nov 17, 2021 at 10:33 AM
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The shares of Target Corporation (NYSE:TGT) are plummeting today, last seen down 5% to trade at $253.06, despite the retail name posting a blowout third-quarter earnings and revenue beat. The company attributed the strong results to a better-than-expected 12.7% jump in comparable store sales, but warned of rising costs due to supply chain issues and compensation.

Today's pullback has the security cooling off from its Nov. 15, all-time high of $268.98, though a familiar floor at the $251 mark looks poised to contain these losses. And while the shares have now slipped below support at the 20-day moving average, TGT remains up 54.8% year-over-year.

The brokerage bunch is already optimistic towards Target stock. Of the 20 analysts in question, 16 carry a "strong buy" rating, while four call it a tepid "hold." In addition, the 12-month consensus target price of $283.45 is a 12.5% premium to its current perch.

The security could benefit from a shift in the options pits, which lean bearish. This is per TGT's Schaeffer's put/call open interest ratio (SOIR), which stands higher than 86% of readings from the past year. In simpler terms, these short-term options traders have rarely been more put-biased. 

What's more, Target stock's score on the Schaeffer's Volatility Scorecard (SVS) sits at 91 out of a possible 100. This means the security has often realized higher volatility than the options pits have priced in, which makes it an excellent premium-buying candidate.

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