Q2 STOCKS TO BUY

Firearms Stock Flies After Earnings Beat

To follow, Cowen and Company raised its price target to $36 from $27

Deputy Editor
Dec 16, 2020 at 11:24 AM
facebook X logo linkedin


The shares of American Outdoor Brands Inc (NYSE:AOUT) are soaring today after the firearms and outdoor sports company reported a fiscal second-quarter earnings beat and raised its full-year guidance. Cowen and Company upped its price target to $36 from $27 in response, and the AOUT is up 9.5% at $18.51 at last check after earlier trading as high as $19.55. 

Today's surge has AOUT surpassing pressure at the $16 region for the first time since August -- the month it began public trading after the summer spinoff with Smith & Wesson. Extending yesterday's gains after bouncing off former pressure at the 20-day moving average, the stock is now up 32.8% in the last week. 

The options pits are seeing a massive amount of post-earnings volume. So far, 6,738 calls and 1,017 puts have crossed the tape -- 29 times what's typically seen at this point. The December 20 call is seeing the most action --with new positions being opened -- meaning plenty of traders are betting on more upside for the stock by the contract's expiration at the end of this week.

Now could be a good time to weigh in on AOUT's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 75% stands in the low 9th percentile of all other readings, implying that options players are pricing in relatively low volatility expectations at the moment. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter