Q2 STOCKS TO BUY

Buckle Stock Brushes Off Stellar Q4 Earnings, Sales

There is still plenty of short interest left to be unwound

Deputy Editor
Mar 12, 2021 at 9:39 AM
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The shares of Buckle Inc (NYSE:BKE) are down 0.4% to trade at $40.50 at last check, despite the company's fourth-quarter earnings of $1.33 per share -- higher than the $1.26 anticipated by analysts. In addition, revenue was in line with expectations, and online sales increased by an impressive 81.5%, while comparable store sales added 18% as well. 

On the charts, BKE is not long removed from its Jan. 29 all-time high of $42.35, with its most recent pullback caught by the $36 level. Steadily climbing on the charts with help from the 30-day moving average -- which the stock just reclaimed after the aforementioned dip -- BKE is up 150% year-over-year. 

Despite the positive price action, the lone analyst in coverage carries a tepid "hold" rating on Buckle stock. Furthermore, though short interest has dropped 24.4% during the last two reporting periods, it still represents a healthy 15.8% of the stock's available float. In other words, it would take short sellers nearly nine days to buy back these bearish bets at BKE's average pace of trading. 

Though BKE hasn't seen a ton of volume in the options pits, these premiums are fairly well-priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 85% stands higher than 21% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

 

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