Is Buying Stock Like Activision Blizzard, Inc. Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like Activision Blizzard, Inc. Good Idea After Today's Bearish Options Activity?

In today’s session Activision Blizzard, Inc. (ATVI) recorded an unusually high (7,174) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious ATVI decrease. With 7,174 contracts traded and 474 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: ATVI161021P00043500 closed last at: $0.55 or 20.3% down. About 2.85M shares traded hands. Activision Blizzard, Inc. (NASDAQ:ATVI) has risen 36.91% since March 1, 2016 and is uptrending. It has outperformed by 27.67% the S&P500.

Analysts await Activision Blizzard, Inc. (NASDAQ:ATVI) to report earnings on November, 7. They expect $0.38 EPS, up 111.11% or $0.20 from last year’s $0.18 per share. ATVI’s profit will be $280.50M for 28.87 P/E if the $0.38 EPS becomes a reality. After $0.40 actual EPS reported by Activision Blizzard, Inc. for the previous quarter, Wall Street now forecasts -5.00% negative EPS growth.

Activision Blizzard, Inc. (NASDAQ:ATVI) Ratings Coverage

Out of 22 analysts covering Activision Blizzard (NASDAQ:ATVI), 19 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 86% are positive. $56 is the highest target while $29.51 is the lowest. The $41.47 average target is -5.49% below today’s ($43.88) stock price. Activision Blizzard has been the topic of 60 analyst reports since July 28, 2015 according to StockzIntelligence Inc. The stock of Activision Blizzard, Inc. (NASDAQ:ATVI) earned “Buy” rating by Brean Capital on Wednesday, August 5. The stock of Activision Blizzard, Inc. (NASDAQ:ATVI) earned “Overweight” rating by Morgan Stanley on Friday, September 23. The company was upgraded on Wednesday, September 2 by Vetr. Stifel Nicolaus maintained it with “Buy” rating and $37 target price in Friday, October 2 report. As per Wednesday, November 4, the company rating was maintained by Mizuho. The stock has “Outperform” rating given by Wedbush on Friday, February 12. The firm has “Buy” rating by Stifel Nicolaus given on Monday, August 8. On Tuesday, August 18 the stock rating was maintained by Argus Research with “Buy”. Mizuho maintained it with “Buy” rating and $35 target price in Friday, February 12 report. The stock has “Overweight” rating given by Barclays Capital on Friday, August 5.

Insitutional Activity: The institutional sentiment increased to 1.38 in 2016 Q2. Its up 0.33, from 1.05 in 2016Q1. The ratio increased, as 39 funds sold all Activision Blizzard, Inc. shares owned while 173 reduced positions. 84 funds bought stakes while 208 increased positions. They now own 598.35 million shares or 17.54% more from 509.05 million shares in 2016Q1.
Piedmont Inv Advsrs Limited Liability Com accumulated 127,085 shares or 0% of the stock. Hartford Investment Mgmt has 123,588 shares for 0.1% of their US portfolio. Cibc Asset Mgmt Inc holds 0.03% or 94,772 shares in its portfolio. Nippon Life Insurance holds 0.03% of its portfolio in Activision Blizzard, Inc. (NASDAQ:ATVI) for 33,161 shares. The Tennessee-based Delta Asset Management Ltd Tn has invested 0.01% in Activision Blizzard, Inc. (NASDAQ:ATVI). Schwab Charles Inv Inc owns 1.51 million shares or 0.08% of their US portfolio. Principal Financial Group Incorporated accumulated 0.05% or 856,113 shares. 1832 Asset L P holds 1.84M shares or 0.29% of its portfolio. Investec Asset Mgmt North America Inc has 243,885 shares for 1.42% of their US portfolio. Vantage Inv Advisors Limited Liability Corp last reported 0% of its portfolio in the stock. West Oak Capital Limited Liability owns 300 shares or 0% of their US portfolio. Zurcher Kantonalbank (Zurich Cantonalbank) holds 0.21% or 405,087 shares in its portfolio. Moore L P accumulated 1.00M shares or 1.56% of the stock. Citadel Ltd reported 5.63M shares or 0.25% of all its holdings. Regentatlantic Ltd Co accumulated 8,767 shares or 0.03% of the stock.

Insider Transactions: Since May 13, 2016, the stock had 1 buy, and 13 insider sales for $943.67 million net activity. Another trade for 29,999 shares valued at $1.31 million was sold by MORGADO ROBERT J. KOTICK ROBERT A sold 8.57M shares worth $347.24 million. The insider Morhaime Michael sold 1.15 million shares worth $43.88 million. $1.95M worth of Activision Blizzard, Inc. (NASDAQ:ATVI) shares were sold by Walther Christopher B. Another trade for 12.91M shares valued at $523.03 million was made by KELLY BRIAN G on Monday, August 15. Tippl Thomas also sold $1.86 million worth of Activision Blizzard, Inc. (NASDAQ:ATVI) on Monday, August 15. $4.96M worth of shares were sold by Durkin Dennis M on Tuesday, August 30.

Activision Blizzard, Inc. is a developer and publisher of online, personal computer , video game console, handheld, mobile and tablet games. The company has a market cap of $32.38 billion. The Firm operates through Activision Publishing, Inc. (Activision) and its subsidiaries, Blizzard Entertainment, Inc. (Blizzard) and its subsidiaries, and Other divisions. It has a 44.06 P/E ratio. The Firm also develops products spanning other genres, including first-person action, action/adventure, role-playing, simulation and strategy.

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