Jefferies and Telsey Advisory hiked their value targets on ANF this morning
Retailers are rounding out the final of the earnings season, with Abercrombie & Fitch Co (NYSE:ANF) set to announce fourth-quarter outcomes earlier than the open on Wednesday, March 6. The shares have been final seen up 0.5% to commerce at $126.65, following price-target hikes from each Jefferies and Telsey Advisory to $149 and $140 from $120 and $105, respectively.
ANF earlier got here simply 1 cent shy of its Feb. 27, report excessive of $128.68, earlier than pulling again to help close to the $124 area. The fairness is on observe for its twelfth win within the final 14 buying and selling days, and sports activities a jaw-dropping 333.3% lead year-over-year lead, with a 43.6% achieve amassed already in 2024.
The fairness completed 5 of its previous eight post-earnings periods decrease, however was larger after the three most up-to-date next-day periods, together with a considerable 31.1% pop again in Could. ANF averages a transfer of 15.9% within the final two years, no matter route, however the choices pits are pricing in a barely bigger-than-usual swing of 16.4% this time.Â
A post-earnings pop may spell hassle for brief sellers and extra tailwinds for ANF. Brief curiosity makes up 11.9% of the inventory’s obtainable float, and it might take over 4 days for merchants to purchase again their bearish bets.
Choices merchants have been betting on a transfer decrease. The safety’s 50-put put/name quantity ratio of two.14 over on the Worldwide Securities Alternate (ISE), Cboe Choices Alternate (CBOE), and NASDAQ OMX PHLX (PHLX) sits larger than 78% of readings from the previous yr. A shift in sentiment may push Abercrombie & Fitch inventory even larger.
It is also price noting that ANF’s Schaeffer’s Volatility Scorecard (SVS) checks in at a 81 out of 100. In different phrases, the safety has constantly realized larger volatility than its choices have priced in.
