Paramount Stock Hits 2-Year Low After Bear Note

The security has shed nearly 40% in the last 12 months

Digital Content Manager
Jul 18, 2022 at 10:13 AM
facebook twitter linkedin


Paramount Global (NASDAQ:PARA) stock is down 2.1% at $24.48 this morning, following a downgrade from Morgan Stanley to "underweight" from "equal-weight," and earlier hit a two-year low of $24.68. The analyst cited a potential pullback in advertisers and customers as an economic recession looms. 

PARA is no stranger to bearish analyst coverage. Last week, Barclays slashed its price target to $20 from $24. The stock's 12-month consensus price target of $33.37 is a 35.7% premium to current levels. Meanwhile, seven of the 15 analysts in coverage called PARA a "hold" coming into today, while nine said "hold" or worse. 

It's been a fairly dismal couple of months on the charts for Paramount stock, which saw its late-May rally running out of steam at the 180-day moving average before plummeting to a two-year low of $23.69 by mid-June. The stock has stuck close to this low in the following weeks, kept in check by pressure at the 20-day moving average, and finally dipped just below it today. Year-over-year, PARA has lost nearly 40%. 

While short interest has dropped slightly in the last reporting period, these bears are still firmly in control. Short interest makes up 9.2% of the stock's available float, or over a week's worth of pent-up buying power. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners