Shares of Deckers Outdoor Corp (NYSE:DECK) are 2.7% lower today, to trade at $104.54, after Piper Sandler downgraded the company from "neutral" to "underweight". DECK's price target was also lowered from $100 to $85. Baird also chimed in with a downgrade of its own, to "neutral" from "outperform," citing concerns about the HOKA parent's growth story.
The retail stock has rallied 30% off its three-year-low of $78.91 from Nov. 5, but is still down roughly 50% year over year. The shares have found support at their 20-day moving average today, and have finished higher in six of the last eight trading sessions. The long-term 200-day trendline is also in focus, cleared twice on a closing basis but now breached.
Options are looking attractive, per the stock's Schaeffer's Volatility Index (SVI) of 48% stands higher than just 25% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
What's more is DECK's Schaeffer's Volatility Scorecard (SVS) which sits at a relatively high 99, indicating Deckers' stock has tended to exceed option traders' volatility expectations during the past year.
