Today’s Stock On Watch: Could Cabelas Inc Change Direction After Today’s Gap Up?

Today's Stock On Watch: Could Cabelas Inc Change Direction After Today's Gap Up?

The stock of Cabelas Inc (NYSE:CAB) gapped up by $7.63 today and has $78.34 target or 24.00% above today’s $63.18 share price. The 9 months technical chart setup indicates low risk for the $4.44B company. The gap was reported on Oct, 4 by Barchart.com. If the $78.34 price target is reached, the company will be worth $1.07 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 15.02% or $8.25 during the last trading session, hitting $63.18. About 19.86M shares traded hands or 2743.54% up from the average. Cabelas Inc (NYSE:CAB) has risen 31.24% since March 1, 2016 and is uptrending. It has outperformed by 19.03% the S&P500.

Analysts await Cabelas Inc (NYSE:CAB) to report earnings on October, 27. They expect $0.80 EPS, up 12.68% or $0.09 from last year’s $0.71 per share. CAB’s profit will be $56.22 million for 19.74 P/E if the $0.80 EPS becomes a reality. After $0.59 actual EPS reported by Cabelas Inc for the previous quarter, Wall Street now forecasts 35.59% EPS growth.

Cabelas Inc (NYSE:CAB) Ratings Coverage

Out of 14 analysts covering Cabela’s (NYSE:CAB), 6 rate it a “Buy”, 0 “Sell”, while 8 “Hold”. This means 43% are positive. Cabela’s has been the topic of 21 analyst reports since July 27, 2015 according to StockzIntelligence Inc. The firm has “Neutral” rating given on Friday, October 23 by Goldman Sachs. The firm has “Neutral” rating by DA Davidson given on Wednesday, October 14. The firm earned “Buy” rating on Friday, October 23 by M Partners. The firm earned “” rating on Friday, October 23 by Sterne Agee CRT. The rating was downgraded by Raymond James to “Mkt Perform” on Friday, October 23. The firm has “Market Perform” rating by Wells Fargo given on Friday, October 23. The firm has “Buy” rating given on Thursday, December 3 by M Partners. DA Davidson maintained Cabelas Inc (NYSE:CAB) on Thursday, September 3 with “Buy” rating. The firm earned “Neutral” rating on Thursday, December 3 by DA Davidson. Credit Suisse downgraded it to “Neutral” rating and $38 target price in Thursday, October 22 report.

According to Zacks Investment Research, “Cabelas Inc is the nation’s largest direct marketer, and a leading specialty retailer, of hunting, fishing, camping and related outdoor merchandise.”

Insitutional Activity: The institutional sentiment increased to 1.07 in Q2 2016. Its up 0.33, from 0.74 in 2016Q1. The ratio improved, as 24 funds sold all Cabelas Inc shares owned while 81 reduced positions. 23 funds bought stakes while 89 increased positions. They now own 40.87 million shares or 5.30% less from 43.16 million shares in 2016Q1.
Oregon Pub Employees Retirement Fund reported 16,679 shares or 0.02% of all its holdings. Great West Life Assurance Can, a Manitoba – Canada-based fund reported 6,329 shares. The California-based Wcm Invest Management Ca has invested 0.1% in Cabelas Inc (NYSE:CAB). Ameritas Investment last reported 0.16% of its portfolio in the stock. Goldman Sachs Grp Incorporated Incorporated, a New York-based fund reported 569,103 shares. Nationwide Fund Advsrs reported 81,976 shares or 0.02% of all its holdings. State Treasurer State Of Michigan owns 19,500 shares or 0.01% of their US portfolio. Smith Graham & Advsrs Lp, a Texas-based fund reported 88,521 shares. Next Inc owns 255 shares or 0% of their US portfolio. Smith Salley And Associate last reported 5,636 shares in the company. Invesco, a Georgia-based fund reported 58,147 shares. First Republic Invest last reported 15,710 shares in the company. Moreover, Teachers Advsr has 0% invested in Cabelas Inc (NYSE:CAB) for 51,907 shares. Citigroup Inc, a New York-based fund reported 7,638 shares. Farmers Merchants Investments last reported 100 shares in the company.

More notable recent Cabelas Inc (NYSE:CAB) news were published by: Reuters.com which released: “Bass Pro Shops hooks Cabela’s in $5.5 billion deal” on October 03, 2016, also Investorplace.com with their article: “Why Cabelas Inc (CAB), Janus Capital Group Inc (JNS) And Twitter Inc (TWTR …” published on October 03, 2016, Washingtonpost.com published: “Janus Capital and Cabela’s soar; Merrimack Pharma sinks” on October 03, 2016. More interesting news about Cabelas Inc (NYSE:CAB) were released by: Nasdaq.com and their article: “Mid-Day Market Update: Cabelas Surges Following Merger News; TASER Shares Slide” published on October 03, 2016 as well as Reuters.com‘s news article titled: “Exclusive: Cabela’s set to receive two binding acquisition bids-sources” with publication date: September 29, 2016.

CAB Company Profile

Cabela’s Incorporated, incorporated on December 17, 2003, is a specialty retailer and a direct marketer of hunting, fishing, camping and related outdoor merchandise. The Firm offers national and regional brand products, including its Cabela’s brand. The Company’s divisions include Retail, Direct, Financial Services, and Corporate Overhead and Other. The Company’s products include merchandise and equipment for hunting, fishing, marine use and camping, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme. The hunting equipment merchandise includes a range of firearms, ammunition, optics, archery products, and related accessories and supplies for hunting and sport shooting. The general outdoors merchandise category includes a range of equipment and accessories supporting outdoor activities, including fishing and tackle products; a range of boats, electronics and marine accessories and equipment; camping gear and equipment for various experience levels of outdoor enthusiasts; food preparation and outdoor cooking products; all-terrain vehicles and accessories for automobiles and all-terrain vehicles, and gifts and home furnishings. The clothing and footwear merchandise category includes fieldwear apparel and footwear, sportswear apparel and footwear, including technical gear for the active outdoor enthusiast, apparel and footwear for the casual customer, and workwear products.

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