Bears Bombard Finish Line Inc (FINL) During Post-Earnings Collapse

Finish Line Inc put volume has jumped to 21 times the intraday average

by Karee Venema

Published on Dec 19, 2014 at 2:22 PM
Updated on Apr 20, 2015 at 5:32 PM

Finish Line Inc (NASDAQ:FINL) is taking it on the chin today, after the company posted a surprise third-quarter loss, and slashed its fiscal 2015 adjusted earnings outlook. As such, the stock has plunged 20.4% to trade at $23.02 -- second only to ImmunoGen, Inc. (NASDAQ:IMGN) as the Nasdaq's biggest laggard -- and earlier hit a new 52-week low of $22.61. What's more, FINL has earned a place on the short-sale restricted list, sending bearish bettors flocking to the equity's options pits.

Specifically, puts are trading at 21 times the average intraday pace, with buy-to-open activity detected at the equity's January 2015 22.50 strike. By initiating these long puts, traders expect FINL to extend its slide into annual-low territory over the next four weeks.

Going forward, the stock could encounter another wave of selling pressure, should any brokerage firms follow in the footsteps of BofA-Merrill Lynch and Deutsche Bank, which both issued bearish notes on the security earlier. Of the 15 analysts covering the shares, seven maintain a "strong buy" rating, with not a single "sell" to be found. Plus, the consensus 12-month price target of $29.79 stands at a steep 29.4% premium to current trading levels. Simply stated, the door is wide open for another round of downgrades and/or price-target cuts for Finish Line Inc (NASDAQ:FINL).


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
CE Stock Heading into Bullish Month
Celanese stock is coming off a free fall from its all-time-high in late 2019
HD Stock Sinks on Bear Notes, In-Store Changes
Home Depot stock received price target cuts after sharing in-store changes
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.