Schaeffer's Top Stock Picks for '25

Options Players, Analysts Flock to JD Stock After Earnings

The equity hit an annual high in response.

Digital Content Manager
Mar 2, 2020 at 2:56 PM
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The shares of China-based e-tail giant JD.Com Inc (NASDAQ:JD) have staged a massive rebound today, following the company's fourth quarter earnings and revenue report, which exceeded analysts' expectations. JD cited strength in its core e-commerce business. The company also forecast a 10% year-over-year growth in sales for its fiscal first-quarter, but added that this could be subject to change, based on recent coronavirus-related uncertainty. 

This news has JD trading 13.4% higher at $43.66, on pace for its highest close in over a year. Today's pop comes right on the heels of JD's plummet toward a one-month low of $36.82 last Friday. Plus, the equity is trading back atop its 30-day moving average -- a familiar level of support that JD briefly dipped south of during last week's sell-off. 

JD Chart March 2

JD's earnings report caught the attention of Jefferies, too. The analyst lifted its price target to $53.40 from $50. This put the consensus 12-month price target at $44.08, which is directly in line with current levels. The majority of analysts in coverage are already optimistic on the stock, too. Coming into today, JD sported eight "strong buy" ratings, compared to five "holds."

The options pits have also been a hotbed of activity today. So far, 124,000 calls and 36,000 puts have crossed the tape, which is triple what's typically seen at this point. Most popular is the March 45 call, while positions are also being opened at the June 55 call. 

 
 

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