Investors Buy Large Volume of Call Options on Children's Place (NASDAQ:PLCE)

Key Points

• On Monday, Children's Place experienced a 71% increase in call options trading volume, with 4,650 options acquired compared to an average of 2,722.
• Despite recent trading optimism, analysts have downgraded Children's Place's stock rating, with UBS lowering its price target from $7.00 to $6.00 and suggesting a "neutral" stance.
• Children's Place reported a quarterly EPS of ($0.15), missing expectations, but had revenue of $298.01 million, exceeding projected figures.

The Children's Place, Inc. (NASDAQ:PLCE - Get Free Report) was the target of unusually large options trading activity on Monday. Stock traders acquired 4,650 call options on the stock. Thisrepresentsanincreaseof71% compared to the typical daily volume of 2,722 call options.

Wall Street Analysts Forecast Growth

PLCE has been the topic of a number of recent analyst reports. UBS Group dropped their price target on shares of Children's Place from $7.00 to $6.00 and set a "neutral" rating on the stock in a report on Monday, June 9th. Wall Street Zen downgraded shares of Children's Place from a "hold" rating to a "sell" rating in a research report on Saturday, June 14th. One research analyst has rated the stock with a Hold rating, According to MarketBeat, Children's Place presently has a consensus rating of "Hold" and a consensus price target of $6.00.

Children's Place Trading Up 20.9%

PLCE stock traded up $1.14 during midday trading on Monday, reaching $6.58. 3,170,968 shares of the company's stock traded hands, compared to its average volume of 598,747. The business has a 50-day moving average price of $4.90 and a two-hundred day moving average price of $5.89. Children's Place has a fifty-two week low of $3.66 and a fifty-two week high of $19.74. The company has a debt-to-equity ratio of 75.63, a current ratio of 0.92 and a quick ratio of 0.14. The company has a market capitalization of $145.86 million, a P/E ratio of -7.70 and a beta of 2.02.

Children's Place (NASDAQ:PLCE - Get Free Report) last posted its quarterly earnings data on Friday, September 5th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.05). The firm had revenue of $298.01 million for the quarter, compared to analysts' expectations of $289.41 million. Children's Place had a negative net margin of 2.04% and a negative return on equity of 10.32%. During the same period in the prior year, the company posted $0.30 earnings per share.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Millennium Management LLC increased its position in Children's Place by 409.4% during the 4th quarter. Millennium Management LLC now owns 60,569 shares of the company's stock valued at $634,000 after buying an additional 48,678 shares in the last quarter. D. E. Shaw & Co. Inc. increased its stake in Children's Place by 967.4% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 162,549 shares of the company's stock worth $1,700,000 after purchasing an additional 147,321 shares during the period. OMERS ADMINISTRATION Corp boosted its stake in shares of Children's Place by 416.8% during the first quarter. OMERS ADMINISTRATION Corp now owns 64,600 shares of the company's stock valued at $565,000 after purchasing an additional 52,100 shares in the last quarter. Alpine Global Management LLC acquired a new stake in Children's Place in the fourth quarter valued at approximately $1,789,000. Finally, Two Sigma Investments LP acquired a new position in Children's Place during the fourth quarter valued at $1,103,000.

About Children's Place

The Children's Place, Inc engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children's Place, Baby Place, and Gymboree. It operates through The Children's Place U.S.

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