Shares of Vail Resorts Inc (NYSE:MTN) are plunging 3.5% to trade at $132.45 out of the gate, sinking after the company shared a fiscal third-quarter earnings miss on revenue that matched expectations. The $8.81 earnings per share and $1.21 billion in revenue were followed up with a cut to the company's full-year outlook, as the skiing destination said it suffered its worst winter in 40 years.
Ahead of today's pullback, MTN was on the up, yesterday logging a third-straight daily win. The overhead $140 level and 200-day moving average have moved in as a ceiling of resistance, however, leaving today's pullback to chip further away at the equity's already 8.7% year-over-year deficit.
Several analysts have already chimed in with price-target cuts, the lowest coming from Barclays to $119 from $138. Heading into today eight of the 12 brokerages in coverage sport a "hold" or "strong sell" recommendation, while the average 12-month price target of $151.09 comes in at a 10% premium to Monday's close.
Shorts have been retreating, with short interest down 4.5% during the most recent reporting period, This accounts for a hefty 20.9% of MTN's total available float, or nearly nine days of pent-up buying power.
Options traders have been more bearish than usual toward Vail Resorts stock recently. The equity's 50-day put/call volume ratio of 4.66 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the highest possible annual percentile.
