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Levi Strauss Stock Slides on Sour Outlook

LEVI is on track for its worst single-session drop in three months

Deputy Editor
Jul 7, 2023 at 10:38 AM
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The shares of Levi Strauss & Co (NYSE:LEVI) are sliding today, after the retailer trimmed its full-year forecast due to weak consumer spending. The company also posted a second-quarter revenue miss, though profits came in one cent above estimates. At last glance, LEVI was down 7% to trade at $13.24, on track for its worst single-session drop since April 6.

The stock is currently below all notable short- and long-term moving averages, including the 80-day trendline, which acted as pressure in June. However, familiar support at the $13 level appears to be keeping losses in check. Year-to-date, the equity is now down 14.4%. 

So far in the options pits, 3,084 calls and 5,906 puts have been exchanged, volume that is already 2.1 times the average daily amount. The July 13 and 14 puts are the most popular, with plenty of open interest at the July 15 call. 

For a stock off 17% year-over-year, downgrades or bear notes could be in play. The majority of analysts rate LEVI a "strong buy," with zero "sells" on the books, while the 12-month consensus price target of $16.91 is a 25.3% premium to the stock's current perch.

 
 

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