DKS to Continue Providing Benefits to Furloughed Workforce

DKS has seen an increase in put open interest over the past year

After it previously announcing that due to the impact of COVID-19 it was temporarily reducing the salaries of its executives, senior leadership and other teammates, Dick's Sporting Goods (NYSE:DKS) this morning said it will furlough a significant number of the workforce beginning April 12. The company, however, will continue to provide health benefits. At last check, DKS stock is up 2.6% trading at $24.46.

Today's surge, along with a slight bump yesterday, has the security pacing toward a third-straight closeabove its 20-day moving average, a trendline that's acted as resistance on the charts since late January. DKS still finds itself in a 51.8% year-to-date deficit; however, it is worth noting that the equity just recently bounced back from its lowest level in over a decade at just under the $14 level.

Analysts are leaning bearish on DKS stock. Of the 17 in coverage, 12 sport a "hold" or worse position. However, the stock's consensus 12-month price target of $33.33is a39.8% premium to the stock's current levels.

DKS stock currently sports a Schaeffer's put/call open interest ratio (SOIR) of 1.07 sits in the elevated 91st percentile of its annual range. In other words, short-term options players have rarely been more put-heavy during the past 12 months.