Activist investor Nelson Peltz is considering changes at the company
Estee Lauder Companies Inc (NYSE:EL) is in the spotlight, after news that billionaire activist investor Nelson Peltz is exploring a "possible shakeup" at the company, according to the New York Post, which could include replacing the current CEO or an eventual sale. At last glance, EL was up 0.9% at $207.52.
On the charts, the security is having a hard time recovering from its May 3 post-earnings plummet of 17.3%. Plus, the $210 level appears to have swooped in as a line of pressure. Year-to-date, the equity is down 17%.
Options bulls seem to be viewing the bear gap as an attractive entry point, as EL's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 92% of readings from the past year.
It's also worth noting that EL's 14-day relative strength index (RSI) of 21 sits firmly in "oversold" territory. In other words, the shares are overdue for a short-term bounce.