Today's hotter-than-expected CPI data is sending retail stocks lower
Kohl's Corp (NYSE:KSS) stock is down 4.1% at $25.34 at last glance, as today's hotter-than-expected September consumer price index (CPI) data weighs on the retail sector. The stock is gathering some attention today, after the Wall Street Journal reported that activist investor Macellum Advisors is said to be calling for the replacement of at least three members of the company's board of directors. The firm pushed for a board refresh earlier this year amid the department store's talks to sell itself, but the move was rejected by investors.
On the charts, KSS isn't trading too far from its Sep. 30 nearly two-year low of $24.61, with the 60-day moving average providing pressure of late. Year-to-date, the equity is down 48.1%.
Options traders have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KSS' 10-day put/call volume ratio of 1.02 ranks higher than 86% of readings from the past year, showing puts being picked up at a quicker rate in comparison to the last 12 months.
Analysts are of similar sentiment, with eight of the 11 in coverage carrying a "hold" or worse rating on Kohl's stock. Plus, though the 12-month consensus price target of $30.71 is an 18.5% premium to current levels, it's still well below even the stock's June highs in the $47 range.
Meanwhile, short interest represents 12% of the stock's available float and has dropped more than 33% during the past two reporting periods. It would take over three days to buy back these bearish bets, at KSS' average pace of trading.