Crocs Stock Climbs from Lows After Upgrade

The stock hit an annual low during Friday's session

Deputy Editor
Jul 5, 2022 at 9:50 AM
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Loop Capital upgraded Crocs Inc (NASDAQ:CROX) to "buy" from "hold" this morning, seeing an attractive entry point for the stock after its recent selloff. The firm also cited "encouraging checks" that point to investor sentiment being overly negative, and potential for growth due to the Hey Dude acquisition. At last check, CROX was up 1.5% to trade at $48.70. 

On the charts, CROX is coming off a July 1 low of $46.08, its lowest level since October of 2020. The 40-day moving average has acted helped pressure the shares lower since December, and Crocs stock is sporting a 62.6% year-to-date deficit coming into today. 

Options traders have been betting on CROX's comeback, however. In the past two weeks, 4.40 calls have been bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 96% of readings from the past year, showing calls being picked up at a much faster-than-usual clip. 

Options look like a decent way to go when weighing in on Crocs stock. The security's Schaeffer's Volatility Scorecard (SVS) sits at a 93 out of 100, meaning CROX has exceeded option traders' volatility expectations during the past year.

 

 

 

 

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