Zumiez Stock Eyes New Bottom After Dismal Earnings

Analysts are already chiming in with bear notes

Digital Content Manager
Sep 9, 2022 at 9:09 AM
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Zumiez Inc. (NASDAQ:ZUMZ) stock was last seen down 12.6% premarket, following the release of the apparel company's second-quarter earnings report after the close last night. ZUMZ posted earnings of 16 cents per share on $219.99 million in revenue, missing analysts' expectations on both figures, while its gross margin also missed the mark. 

The brokerage bunch is chiming in with bear notes in response. Jefferies slashed its price target to $24 from $30, while William Blair lowered its rating to "market perform." Coming into today, analysts were split on the stock, with half rating it a "strong buy," and the other half with tepid "hold" ratings. Meanwhile, the 12-month consensus price target of $24.50 is a 7.7% discount to last night's close. 

Zumiez stock yesterday shed 4.5% after a breakout attempt was rejected by familiar pressure at the 80-day moving average, a trendline that's been toppled only twice since Jan. 10. Should today's premarket results hold, ZUMZ will be opening at its lowest level since August 2020, adding to its already dismal 44.7% year-to-date deficit. 

Options traders have been betting bearishly. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 10-day call/put volume ratio of 9.69. Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) of 4.03 stands higher than just 2% of annual readings. This means short-term options traders have rarely been more put-biased. 

 

 

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