Auto Parts Stock Poised for More Downside

Most analysts are bullish on APTV stock

by Research Dept.

Published on Dec 26, 2018 at 1:10 PM

Auto parts name Aptiv (NYSE:APTV) has been charting a path steadily lower since topping out at a June peak above $103, down almost 40%. The bottom may not be in place yet, though, given the amount of optimism that's currently priced into the underperforming stock.

aptv daily chart dec 21

 

For starters, 16 of 17 analysts covering APTV maintain a "buy" or better rating, even as the security wallows in annual-low territory. This puts the stock at risk of downgrades, which could exacerbate headwinds on the shares.

Plus, the stock has racked up a 50-day call/put volume ratio of 2.31 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which registers in the 79th annual percentile. This means that calls have been bought to open over puts at a quicker-than-usual clip.

Meanwhile, short sellers have been actively targeting the stock, with short interest more than doubling since the start of the year. More selling by shorts could amplify pressure on APTV.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this APTV commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

SAGE Therapeutics Stock Hot Ahead of Earnings
The drug name is scheduled to report on Tuesday
Bear Signal Flashing for This Healthcare Stock Before Earnings
At least four analysts have issued price-target cuts on the stock this week
Signal Says This Retail Stock's on Sale
The shares pulled back this week on news of a Levi Strauss IPO
START YOUR DAY SMARTER.

Get Schaeffer's pre-market news bulletin every morning before the bell rings.
It's free to sign up.


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


IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
3 of Today's Worst Nasdaq Stocks
The stocks are sitting out today's rally in the broader equities market
2019 Rally Continues for Stock Market
The Nasdaq is eyeing its longest weekly win streak since 2016
How American Lithium Tech May Be Poised for 614% Growth
A new lithium technology could change the face of lithium production forever.