Winnebago Stock on the Rise After Earnings Win

Sentiment surrounding the stock has been incredibly bearish

Digital Content Manager
Jun 22, 2022 at 9:19 AM
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Shares of Winnebago Industries, Inc. (NYSE:WGO) are up 1.8% at $46.58 this morning, following the recreational vehicle company's fiscal third-quarter earnings report. WGO posted profits of $4.13 per share on $1.46 billion in revenue, besting analysts' expectations. Winnebago also saw a rise in gross profit margins, and cited higher prices for its top- and bottom-line beats. 

Winnebago stock staggered lower on the charts after peaking at a familiar ceiling at the $79 level in early January. In fact, the security has lost roughly 38% this year, with noted pressure emerging at the 30- and 80-day moving averages. 

Sentiment surrounding WGO in the weeks leading up to its earnings report has been incredibly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 10-day put/call ratio of 2.52, which stands higher than 81% of readings from the past year. This means put are being picked up at a much quicker than usual clip of late. 

Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.52 stands higher than all but 3% of annual readings. In other words, short-term options traders have rarely been more put-biased. 

Short sellers have also been piling on. Short interest rose 20.4% in the last two reporting periods, and now makes up 19.9% of the stock's available float. Plus, it would take over seven days to cover these bearish bets at WGO's average daily pace of trading. 

 

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