EssilorLuxottica will acquire Supreme for $1.5 billion in cash
Shares of Vans sneaker maker VF Corporation (NYSE:VFC) are 8.9% higher in premarket trading, following news that EssilorLuxottica agreed to acquire the company's Supreme brand by the end of 2024 in a $1.5 billion cash transaction.
On track to open just below the $15.20 area, VFC could begin today's session at its highest level since early March. VF stock is also poised to reclaim support from long-term resistance at its 200-day moving average. Today's positive price action is a step in the right direction, as the security battles to overcome a 24.4% year-to-date deficit.
Puts have been overwhelmingly been popular, per VFC's Schaeffer's put/call open interest ratio (SOIR) of 1.51, which stands higher than 100% of annual readings. Echoing this, the equity's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), sits in the 78th percentile of readings from the past year.
Short interest is inching lower, but the 49.7 million shares sold short represent 12.8% of VF stock's total available float. It would take more than six days to cover at the security's average pace of trading.