VSCO is surging after announcing a $250 million share repurchase program
The shares of Victoria's Secret & Co (NYSE:VSCO) are up 10.9% to trade at $53.89 at last check, after the lingerie name announced a $250 million share repurchase plan. The company also reiterated its fiscal fourth-quarter sales forecast, and boasted strong holiday sales.
Recently split from L Brands (LB) as a stand-alone company, the newly traded stock has had a volatile run on the charts since its initial public offering (IPO) in July. Today's pop has VSCO breaking above several moving averages, including the 60-day trendline, which may serve as support alongside the familiar $52 level.
Call traders have been quick to chime in on Victoria's Secret stock today, with call volume running at 11 times what's typically seen at this point. The January 2022 55-strike call is by far the most popular, with new positions being opened there.
Meanwhile, analysts are overwhelmingly bullish towards the stock, with eight of the nine in coverage sporting a "strong buy" rating. What's more, the 12-month consensus price target of $82.73 is a 53.6% premium to current levels.
It's also worth noting that short interest represents 5.7% of the stock's available float. It would take nearly four days to buy back these bearish bets, at VSCO's average pace of daily trading.