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Children's Place Stock Pummeled After Revenue Miss

The company also pulled its full-year guidance

Deputy Editor
Jun 11, 2020 at 11:30 AM
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Children's Place Inc (NASDAQ:PLCE) is down 6.1% at $44.17 at last check, after the company reported a revenue miss. A result of the uncertainty surrounding the pandemic, PLCE is one of the many to pull its 2020 full-year guidance, though 61 stores reopened to the public in the U.S. and Canada as of June 8. 

Children's Place has fallen back on the charts, turned away by the 200-day moving average after a steady climb from its 16-year mid-March low of $9.25. For the month, the equity is still up around 50%, a chip-shot away from support at the 100-day moving average.

Five out of 10 analysts sport a tepid "hold" rating on PLCE, with four "strong buys" and one "sell." Meanwhile, the 12-month consensus price target of $38.40 is a 14.7% discount to current levels.

Calls are popular in the options pits, as the stock's 50-day call/put volume ratio of 2.58 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 86% of readings from the past year.

Also worth noting, though short interest has fallen off 9.1% in the most recent reporting period, with these 5.19 million shares sold short still accounting for 38% of the stock's available float. In other words, it would take over four days to buy back these bearish bets, at PLCE's average pace of trading. 

 

 

 

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