Hilton Hotels stock also offers chart support
Hospitality Name Hilton Worldwide Holdings Inc (NYSE: HLT), also known as Hilton Hotels, outperformed the broader market, up 70% year over year. In addition, the security recently pulled back to its 120-day moving average, which has been a significant trend line in recent years. The stock’s current price, near the $ 120 mark, is also roughly six times its initial public offering (IPO) price, while the $ 117 floor has come in since HLT’s post profits rose above it in February. With all of that in mind, now looks like an ideal time to bet on LDS next promotion.
Analysts remain divided on Hilton Hotels stock, which leaves plenty of room for future upgrades and / or price target increases. Of the 14 14 in question, seven have a lukewarm “hold” rating, while seven say “buy” or better. Plus, the 12-month consensus target of $ 127 is just slightly above the stock price.
Meanwhile, despite a recent decline, short rates are 65% above pre-pandemic levels, suggesting that there is still potential for additional short cover. The 8.09 million stocks sold short now account for roughly 3% of the stock’s available free float, or spending power pent up for nearly a week.
A decrease in pessimism in the options markets could also propel Hilton Hotels shares. This corresponds to the stock’s 50-day put / call volume ratio of 2.05 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which are in the 99th percentile of their annual range lies. Correspondingly, the open interest ratio (SOIR) of Schaeffer’s put / call of 1.17 is over 85% of the values from last year. In other words, short-term options traders have rarely been more put biased.
After all, Hilton Hotel stock currently offers attractive rewards. According to Schaeffer’s volatility index (SVI) of 26%, this is higher than just 3% of all other values for the last 12 months. Our recommended call option has a leverage ratio of 7.5 and will double if the underlying equity increases by 12.8%.
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