Signet Jewelers Stock Plummets Despite Upbeat Outlook

Year-over-year, SIG still sports an over 35% lead

Digital Content Manager
Mar 17, 2022 at 10:34 AM
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Signet Jewelers Ltd. (NYSE:SIGis doing right by its forecasts today. The company walked into the earnings confessional this morning to report a revenue win of $2.81 billion -- about $40 million more than Wall Street anticipated -- while same-store sales grew over 23% year-over-year.  In addition, the retailer raised its quarterly dividend by 11% to 20 cents per share, and offered a strong current-quarter and 2023 outlook, despite inflationary pressures and suspended business activities with Russia. 

Last seen down 3.1% at $75.30, SIG surged to its highest level in a month earlier, and is still pacing for its best close in roughly three weeks, after bouncing off the the $60 level. The equity is also breaking through a ceiling at the 60-day moving average, while boasting a 35.4% year-over-year lead.

Short sellers have been piling on Signet Jewelers stock of late. More specifically, short interest added 39.9% in the last two reporting periods, and the 6.80 million shares sold short make up 13.2% of the stock's available float, or more than one weeks' worth of pent-up buying power.

An unwinding of pessimism in the options pits could boost SIG. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 1.20 sits higher than all readings from the past 12 months, indicating long puts have been picked up at a much quicker-than-usual clip.

The equity's normally quiet options pits are bursting with activity today. So far, 1,411 calls and 999 puts have crossed the tape, which is nine times what is typically seen at this point. Most popular is the March 85 call, followed by the January 2023 100 call.


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