Entertainment Stock Brushes Off Earnings Miss

Two analysts raised their price targets after the event

Deputy Editor
Feb 24, 2022 at 10:16 AM
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Live Nation Entertainment Inc (NYSE:LYV) announced a mixed fourth-quarter report after the close yesterday. While revenue beat estimates, the company's losses of 86 cents per share were greater than the losses of 54 cents anticipated by analysts. To follow, J.P. Morgan Securities raised its price target to $130 from $117, while Guggenheim adjusted its price objective to $140 from $134. At last glance, LYV was reversing its earlier losses, up 7.1% at $121.37, even as the broad-market selloff adds pressure in the background. 

LYV had a choppy last few months on the charts, though the $100 level provided a consistent floor for the furthest pullbacks. Today, the stock's 90-day moving average captured its earlier retreat, and the equity is now on track for its fourth-straight weekly win. Year-to-date, the security hovers near breakeven. 

An unwinding of short interest could send LYV higher still. Shorts have been building their positions, and the 15.71 million shares sold short account for 10.4% of the stock's available float, or nearly seven days worth of pent-up buying power. 

Meanwhile, the options pits are more pessimistic than usual today, with puts running at three times what's typically seen. So far, 890 puts and 760 calls have crossed the tape. The March 90 put is seeing the most activity, followed by the March 100 put. 

 

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