Checking in with the packaged food manufacturer prior to his quarterly report
The shares of Conagra Brands Inc (NYSE: CAG) are flat this afternoon, most recently down 0.1% to $ 36.15. That’s not bad when you consider wide market sell-off market Most stocks are stuck right now. Investors are preparing for the packaged food manufacturer’s fourth quarter earnings report due out Tuesday, July 13th. Below, we’ll dive into the technical lineup of Conagra stock ahead of the event and what investors can possibly expect after his report.
Conagra stock has seen mostly positive post-earnings reactions for the past two years, including a 15.9% plunge the next day in December 2019. The stock slipped 12.1% according to its September 2019 earnings report. CAG has averaged 5.8% return on the next day regardless of direction, which is in line with the 5.4% move options that traders are pricing in over the next week during that time.
The share’s performance in the recent charts leaves much to be desired. CAG was below its break-even year-to-date near the $ 36.40 mark late last month. Stocks have since consolidated just below that, combined with the 140-day moving average that has erased any bullish move over the past week. The stock still has a chance to break into the 320-day moving average, however, and is now 7% ahead of six months.
Unsurprisingly, analysts don’t have a lot of confidence in CAG right now. The stock has only one of the six “strong buy” ratings included in the coverage. Meanwhile, short sellers are piling up ahead of CAG’s profits. Short rates rose 18.1% in the last two reporting periods and now represent almost a week of pent-up purchasing power with the stock’s average daily trading pace.
There are a few bullish holdouts in the option pits, however. The share’s 50-day call / put volume ratio of 2.83 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) is over 81% of last year’s values . This suggests a preference for long calls lately. Given the multitude of short sellers flocking into the stocks, some of these short sellers might call calls Options hedging.