Shares breached a long-term level of support
Levi Strauss & Co (NYSE:LEVI) announced better-than-expected earnings for its fiscal second quarter, but missed revenue expectations. The retailer noted wholesale demand in the U.S. is unstable, and maintained its annual profit and revenue forecast due to adverse foreign exchange impact .In response, J.P. Morgan Securities cut its price target by $1 to $20.
LEVI was last seen down 16.5% to trade at $19.30, breaching long-term support from its 30-day moving average. The security earlier gapped to its lowest level since April, and is pulling back from a June 6, two-year peak of $24.34 as it heads for its worst single-day percentage loss on record. The shares are still up 18.1% in 2024, however.
Despite unwinding short interest -- down 14.7% over the last two reporting periods --- short sellers remain in control. The 8.86 million shares sold short make up 9.4% of Levi Strauss stock's available float.
Drilling down to today's options activity, 9,869 calls and 11,000 puts have already crossed the tape, which is a whopping 24 times the volume that is typically seen at this point. The most popular contract by far is the July 22 put, followed by the 21 put in that same series.