Analysts, Options Traders Target Logistics Stock After Strong Earnings

Brokerage firms had mixed responses to the results

Deputy Editor
Apr 19, 2022 at 10:15 AM
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J B Hunt Transport Services Inc (NASDAQ:JBHT) revealed strong growth in all of its businesses this morning, reporting better-than-expected first-quarter results. Analysts chimed in with mixed sentiment, however, with two price-target hikes and three price-target cuts. Notably, BMO, which currently holds a "market perform" rating, slashed its price objective to $190 from $210. 

On the charts, JBHT suffered a steep pullback at the beginning of the month, placing it further from its March 16 all-time high of $218.18 and below its 320-day moving average for the first time since May 2020. Since then, the stock has consolidated below the $175 level. It could be due for a short-term bounce, however, give that its 14-day relative strength index (RSI) of 12.2 sits firmly in "oversold" territory. Today, the equity is oscillating above and below breakeven, currently down 0.3% to trade at $171.00. 

J B Hunt Transport Services stock's typically muted options pits are seeing much more interest today, with options volume running at four times the intraday average straight out of the gate. The May 150 and 155 puts are the most popular, followed by the May 185 call, which happens to be the top open interest position. 

In the last 10 days, calls have been popular, with 2.65 calls bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 87th percentile of its annual range, showing a much larger preference for bullish bets than usual. 


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