Logitech Stock Downgraded on Preliminary Q3 Results

Today's dip has shares trading below long-term support

Digital Content Manager
Jan 12, 2023 at 9:45 AM
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Logitech International SA (NASDAQ:LOGI) is sinking, last seen down 17.5% at $56.20, after the company's preliminary third-quarter results missed expectations. Plus, the tech name cut its 2023 outlook, with J.P. Morgan Securities pointing to uncertainty in supply availability that may extend into the end of the fiscal year.

In turn, Wedbush downgraded the security to "neutral" from "outperform," and slashed its price target to $60 from $70. The brokerage bunch was optimistic coming into today, with seven of nine covering firms calling LOGI a "strong buy," indicating the equity may attract additional bear notes.

The shares yesterday surged to their highest level since May, but are today eyeing their worst day in more than a decade. This bear hap also has the equity trading below its 40-day moving average, which had been acting as support since October. Year-over-year, LOGI is down 32.7%.

Bearish bets have been more popular than usual over in the options pits. This is per Logitech International stock's 50-day put/call volume ratio of 3.76, which sits higher than 99% of annual readings back at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). 

Now looks like a great opportunity to take advantage of the security's next move with options. LOGI's Schaeffer's Volatility Index (SVI) of 35% sits in the low 9th percentile of its annual range. This means the stock is currently sporting attractively priced premiums.

 

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