A shift in analyst sentiment could provide tailwinds to LOGI
Schaeffer’s Investment Research was built from scratch on Bernie Schaeffer’s vision of providing accessible professional-grade trading information to retail traders. This remains our mission today, 40 years later. Bernie –and the Schaeffer’s team — has never been one for swinging for base hits. We are always seeking the next grand slam — in business and in trading. Options are incredibly attractive to traders with this high risk and high reward mentality. Profits are literally uncapped, while your downside risk is limited to your initial investment.
Thank you for joining us on this journey within the options industry, and we look forward to seeing you as we continue to trade. We hope you enjoy one of our carefully chosen stock picks from our team of top traders.
Want a full breakdown of all of Schaeffer’s Investment Research’s top stock picks? Click here for complimentary (and instant!) access. Thank you for 40 years of support!
Shares of computer hardware giant, Logitech International (NASDAQ:LOGI), stock have been outperforming on a large scale, up 90% over the past 12 months. A slew of support for LOGI has been in place to aid this climb, most notably at the 40-day moving average, round-number $20 billion market-cap level, and the $117-$118 mark. Even further, the round +20% year-to-date level has also emerged as support for Logitech stock.
Switching gears toward brokerage coverage, there looks to be plenty of room for upgrades on LOGI. This is per the 50% of analysts that sport a tepid “hold” recommendation on the equity at this time.
Meanwhile, LOGI looks ripe for a short squeeze. In fact, over the past two reporting periods, short interest dropped 6.3%, but still accounts for 8% of Logitech stock’s total available float. At Logitech stock’s average pace of daily trading, it would take short sellers more than three weeks to buy back these bearish bets.
A shift of sentiment in the Logitech options pits could act as a tailwind as well. Specifically, Logitech stock’s 50-day put/call volume ratio of 1.57 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands in the 85th percentile of its annual range. In simpler terms, puts are being purchased over calls at a much faster-than-usual pace of late.