The U.S. court of appeals will let Corteva continue the sales of its weed killer
Corteva Inc (NYSE:CTVA) on Wednesday was granted approval by the U.S. appeals court to continue selling its agricultural weed killer Enlist Duo, which environmentalists deemed detrimental to plants and wildlife. This decision comes one month after competitor Bayer's herbicide was blocked by the same court, giving Corteva a competitive edge in sales in the $40 billion U.S. soybean market. At last check, CTVA is slightly lower, trading down 0.4% at $28.55.
While CTVA looks to be cooling off today, the equity has found several layers of support on the charts in recent months. Specifically, the 80-day moving average captured several pullbacks in late June and early July, while the ascending 40-day sits directly below as potential support going forward. Today, CTVA is also testing support at its year-over-year breakeven level.
The consensus among analysts is split, with nine in coverage calling CTVA a "buy" or better, while "10 say "hold" or worse. Meanwhile, the 12- month consensus target price of $31.18 is a 9.7% premium to current levels.
Options players, however, are definitely optimistic over Corteva stock. In the last 10 weeks, 9.38 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits lower than just 2% of readings from the past year, suggesting a healthier appetite for long calls than usual.