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Accenture Stock Snags Record High After Earnings

The recent work environment has given demand a boost

Deputy Editor
Jun 24, 2021 at 10:42 AM
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The shares of Accenture PLC (NYSE:ACN) are up 2.7% to trade at $293.41 at last check, after the company reported better-than-expected fiscal third-quarter earnings and revenue and raised its full-year forecast. Spurred by the pandemic, businesses switching to hybrid work models gave the equity a boost as digital, cloud and security services found strong demand.

ACN surged to a fresh record of $297.80 high this morning before pulling back to more modest gains. Still, today's pop has the stock breaking out above the $287 level, which has served as a ceiling since mid-May. Year-to-date, the security is up 11.6%. 

Of the 17 analysts in coverage, 12 carry a "buy" or better rating on Accenture stock, with the remaining five sporting a tepid "hold." Meanwhile, the 12-month consensus price target of $304.48 is a chip-shot away from current levels. 

Long term, the options pits have been much more bearish than usual. This is per ACN's 50-day put/call volume ratio of 1.70 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 94% of readings from the past year, indicating a strong penchant for long puts. 

Today, however, options traders have shifted bullish amid a surge in overall volume. So far, 4,691 calls and 2,187 puts have crossed the tape -- seven times what's typically seen at this point. The weekly 6/25 300-strike call is the most popular, with new positions being opened. 

 

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