GrubHub Inc Unusual Bearish Options Activity Means Higher Risks

 GrubHub Inc Unusual Bearish Options Activity Means Higher Risks

In today’s session GrubHub Inc (GRUB) recorded an unusually high (1,550) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious GRUB decrease. With 1,550 contracts traded and 29534 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: GRUB161021P00040000 closed last at: $0.7 or 22.2% down. The stock decreased 2.69% or $1.15 during the last trading session, hitting $41.53. About 1.85 million shares traded hands or 34.06% up from the average. GrubHub Inc (NYSE:GRUB) has risen 80.54% since March 1, 2016 and is uptrending. It has outperformed by 71.30% the S&P500.

Analysts await GrubHub Inc (NYSE:GRUB) to report earnings on October, 25. They expect $0.15 earnings per share, up 36.36% or $0.04 from last year’s $0.11 per share. GRUB’s profit will be $12.68M for 69.22 P/E if the $0.15 EPS becomes a reality. After $0.19 actual earnings per share reported by GrubHub Inc for the previous quarter, Wall Street now forecasts -21.05% negative EPS growth.

GrubHub Inc (NYSE:GRUB) Ratings Coverage

Out of 18 analysts covering Grubhub Inc (NYSE:GRUB), 7 rate it a “Buy”, 0 “Sell”, while 11 “Hold”. This means 39% are positive. $50 is the highest target while $20 is the lowest. The $33.07 average target is -20.37% below today’s ($41.53) stock price. Grubhub Inc has been the topic of 38 analyst reports since July 27, 2015 according to StockzIntelligence Inc. The rating was maintained by Oppenheimer on Wednesday, October 28 with “Outperform”. Wedbush maintained GrubHub Inc (NYSE:GRUB) rating on Friday, July 29. Wedbush has “Outperform” rating and $47 price target. The stock of GrubHub Inc (NYSE:GRUB) earned “Perform” rating by Oppenheimer on Friday, February 5. The stock of GrubHub Inc (NYSE:GRUB) has “Equal Weight” rating given on Friday, July 29 by Barclays Capital. Stifel Nicolaus maintained GrubHub Inc (NYSE:GRUB) rating on Friday, July 29. Stifel Nicolaus has “Buy” rating and $45 price target. The rating was maintained by Brean Capital with “Buy” on Monday, August 31. The company was downgraded on Friday, July 29 by Maxim Group. The stock of GrubHub Inc (NYSE:GRUB) earned “Sector Perform” rating by RBC Capital Markets on Friday, February 5. The stock of GrubHub Inc (NYSE:GRUB) earned “Buy” rating by Brean Capital on Wednesday, October 28. RBC Capital Markets upgraded GrubHub Inc (NYSE:GRUB) rating on Thursday, July 2. RBC Capital Markets has “Outperform” rating and $42 price target.

Grubhub Inc. is a provider of an online and mobile platform for restaurant pick-up and delivery orders. The company has a market cap of $3.51 billion. The Firm connects more than 40,000 local restaurants with diners in more than 1,000 cities across the United States. It has a 87.17 P/E ratio. For restaurants, Grubhub generates higher margin takeout orders at full menu prices.

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