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Hotel Stock Continues Lower Despite Upgrade

There are still no "buy" or better ratings to Hyatt stock in sight

Deputy Editor
Aug 17, 2021 at 10:03 AM
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Hyatt Hotels Corporation (NYSE:H) stock is in the spotlight today, after Truist Securities upgraded its rating on the hotel stock to "hold" from "sell." Despite the bull note, broad-market pressures, especially pertaining to reopening stocks, are weighing on H, which was last seen down 0.9% to trade at $71.59.

On the charts, H has been on a choppy downward trend since its late-February annual high of $92.21. Late last week, with pressure from a slew of short- and long-term moving averages. the shares breached their year-to-date breakeven level, and are currently trading at their lowest level since early February.

Analysts are wholeheartedly bearish on Hyatt stock. Coming into today, all 12 in coverage sported a "hold" or worse rating on the stock, and today's analyst note does little to shift sentiment.  

In the options pits, however, traders have been more bullish than usual. This is per the security's 50-day call/put volume ratio of 8.23 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 88% of readings from the past year, showing calls being picked up at a faster-than-usual rate these past 10 weeks. 

However, given almost 10% of H's total available float is sold short, its possible some of this call buying could be shorts seeking an options hedge against any unexpected upside. 

 

 

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