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Footwear Stock Flies Higher After Strong Quarter

The stock is rebounding from a nearly two-year low

Deputy Editor
May 20, 2022 at 10:35 AM
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Deckers Outdoor Corp (NYSE:DECK) reported fiscal fourth-quarter earnings of $2.51 per share on revenue of $736.01 million after the close yesterday -- beating estimates of $1.32 per share and $639.2 million, respectively -- while also posting an upbeat full-year forecast. The stock is soaring in response, up 18.2% to trade at $268.06 at last glance. No fewer than three analysts cut their price objectives after the event, while Stifel raised its price target to $338 from $315.

This positive price action has DECK rebounding from yesterday's 20-month low of $212.93. A short-term bounce could've already been in the cards, as the security's relative strength index (RSI) of 32.8 sits on the cusp of "oversold" territory. The 80-day moving average still lingers above, however, after rejecting the shares at the $300 level last month. Year-to-date, the equity is still down 25.9%. 

The stock's typically quiet options pits are seeing much more activity than usual, with options volume running at 21 times what's typically seen. The most popular contract is the May 270 call, which expires at the end of the day. It's also worth noting that new positions are being bought to open there. 

 

 

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