Bulls Take Notice After J.P. Morgan Hands Out Round of Upgrades

SNAP and PENN both earned price-target hikes from J.P. Morgan Securities

Digital Content Manager
Jul 15, 2020 at 12:05 PM
facebook twitter linkedin


J.P. Morgan Securities passed out a round of bull notes today, with a specific focus on the tech sector. Two names in particular the analyst highlighted were Barstool Sports-partner Penn National Gaming, Inc (NASDAQ:PENN) and social media stalwart Snap Inc (NYSE:SNAP). Below, we'll take a look at how these two stocks are behaving today, and the heightened call trading surrounding both. 

Starting with PENN, J.P. Morgan Securities upped its price target to $36 from $28, and maintained its "overweight" rating. In response, PENN is flying higher, up 14.5% at $33.35 midday. The security is set to topple its 20-day moving average, which has acted as pressure since late-June.

PENN July 15

Despite an impressive 29% gain for the year, short sellers are starting to climb aboard the gaming equity, and the 19.6 million shares sold short make up a solid 16.7% of PENN's available float. Should today's surge change these bears' minds, an unwinding of shorts could potentially put even more wind at the stock's back. 

A look at today's options activity shows a strong preference for calls. So far, 25,000 calls have crossed the tape -- double the intraday average -- compared to 7,915 puts. The July 33.50 call is seeing a lot of action, with positions being bought to open here. 

Moving on to SNAP, the J.P. Morgan hiked its price target on the stock to $22 from $28 and maintained its "overweight" rating. At last check, snap is up 0.3% at $23.81, once again contending with overhead pressure at its 10-day moving average. This trendline helped guide the security toward its July 9 all-time high of $26.76, though the shares fell below here just a few days later. 

SNAP July 15

Other analysts are chiming in with price-target hikes today, too. Cowen and Company and MKM Partners both lifted their estimates to $29. This puts the consensus 12-month price target at $21.49, which is a 10.2% discount to current levels. 

Options players are favoring calls for SNAP, too. So far, 72,000 calls have exchanged hands -- 1.6 times the intraday average. The most popular is the August 25 call, where positions are being opened. 

 

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners