Fox Stock Moves Higher After Analyst Upgrade

The brokerage believes FOXA could benefit from sports betting

Digital Content Manager
Jan 24, 2022 at 10:28 AM
facebook twitter linkedin


Fox Corp (NASDAQ:FOXA) is up 3.1% to trade at $38.86 at last check, after the equity earned an upgrade from UBS to "buy" from "neutral." The brokerage said Fox should be one of the biggest traditional media companies to benefit from sports betting, and noted it is well-positioned in the pay-TV sector.

Analysts were already overwhelmingly bullish towards Fox stock coming into today, with all but one of the seven in coverage sporting a "buy" or better rating. Plus, the 12-month consensus target price of $45.58 is a 17.5% premium to the security's current levels.

On the charts, the $41.50 level rejected the equity's early-December rally off the $34 area. The shares are now bouncing off a familiar floor at the $37.50 mark, which coincides with support at its 40-day moving average. Longer term, FOXA sports a 29% year-over-year lead.

Short sellers have started to hit the exits. Short interest fell 5.8% over the last reporting period, yet the 16.48 million shares sold short still make up 5.3% of the stock's available float, or more than one week's worth of pent-up buying power.

It's worth noting options traders have been much more bullish than usual in the past two weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FOXA carries a 10-day call/put volume ratio of 7.15, which sits higher than 88% of readings from the past year. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners