MIK received a price-target hike from Credit Suisse, too
The shares of craft retailer Michaels Companies Inc (NASDAQ:MIK) are up 35.9% at $7.49 at last check --one of the best stocks on the New York Stock Exchange (NYSE) so far today -- fighting further out of the penny stock range. Today's rise comes after J.P. Morgan added MIK to its analyst focus list, upgrading it to "overweight" from "neutral," while hiking its price target to $13 from $7 and praising the company's sales growth potential. Credit Suisse threw a price-target hike of its into the mix -- to $5 from $4.
Today's pop has MIK looking to conquer its descending 320-day moving average for the first time in two years. Rising above the $7 region for the first time since late-January pre-bear gap levels, the equity is now up 146.8% in the last monthly period.
Analysts had been bearish coming into today, with all five in coverage sporting a "hold" or worse. Furthermore, the 12-month consensus target price of $5.59 is a 29.8% discount to current levels, indicating today's bullish analyst attention could be just the beginning.
Short sellers have been quick to jump on the bearish bandwagon as well, making the equity ripe for a short squeeze to fuel additional gains. Short interest is up 13% in the last reporting period, representing a whopping 40.2% of the stock's available float. In other words, it would take almost six days to buy back these pessimistic shares, at MIK's average pace of trading.
Calls are flying off the shelves today in MIK's options pits. At last check, over 6,600 calls have changed hands, 10 times the average intraday amount and volume pacing for the 97th percentile of its annual range. Leading the charge is the June 10- and 7.50-strike calls.