Azek stock is headed for its best day ever
Outdoor living stock Azek Company Inc (NYSE:AZEK) is headed for its best day ever, up 19.2% to trade at $49.35 at last glance. News that cement manufacturer James Hardie Industries (JHX) will acquire the Chicago-based company in a cash and stock deal worth $8.75 billion is giving the shares a hefty boost. JHX is tumbling after the news, however, last seen down 16.5%.
Analysts are chiming in, but not necessarily with positive sentiment. Both Baird and Stephens downgraded the stock to "hold," with price targets of $53 and $58, respectively, though BMO Capital did throw in a modest price-target hike to $57 from $54.
On the charts, today's bull gap has AZEK trading at its highest levels since mid-February. Familiar pressure at the $50 level, which rejected the stock in May 2021 and March-April of 2024, appears to be keeping gains in check. Moving closer to its Dec. 12 record high of $54.91, the equity is breaking into positive territory for 2025 with a 3.2% gain.
AZEK's typically quiet options pits have already seen their average daily options volume today. The June 60 and 55 calls are the most popular, with new positions being sold to open at the April 50 call.