FCAU Stock Destroyed Amid Temporary Plant Closures

The automaker announced that it was temporarily stopping production at its Italian factories

European automakers are spinning their wheels today as several big names said they would be halting production and temporarily closing factories in an effort to combat the rapidly spreading coronavirus. Fiat Chrysler Automobiles NV (NYSE:FCAU) is one of the names getting hit today after announcing plans to stop operations in some of its Italian plants, and reduce production rates in response to the dramatic outbreak the region is currently seeing. At last check FCAU is off 3.1% at $10.68.

Fiat Chrysler has suffered verily during the recent broadmarket selloff. The stock is off 27.4% in the 2020, guided lower by its 10- and 30-day moving averages. This year-to-date dip has undoubtedly been exacerbated by this week's massive bear gap that sent FCAU to two-year lows, though it looks like the $10.50 region may be acting as the floor for the shares.

Analysts have yet to chime in, but there's plenty of room for downgrades. Coming into today, four called Fiat Chrysler a "strong buy" and two considered it a "hold." Plus, the consensus 12-month target price of $18.50 is a 73.7% premium to current levels.

The options pits, on the other hand have had a strong reaction to FCAU's plummet. This is per the equity's 10-day put/call volume ratio of 4.56 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than all other readings from the past year, meaning long puts haven't been more popular.