Solar module manufacturer JinkoSolar (JKS) is gearing up to report third-quarter earnings results before the open on Tuesday, Nov. 30. The equity is lower ahead of the event, last seen down 1.3% at $ $57.42. Below, we will take a look at JKS’ technical setup, and explore some of its previous post-earnings activity to get an idea of where the equity may be headed.
JinkoSolar stock recently rallied off the $41 level, touching a nine-month high just above the $66 area on Nov. 22. However, the equity lost over 6% in the last couple of days, and has slipped below the formerly supportive 30-day moving average. Longer term, JKS is down 7.6% year-to-date.
The stock has a history of mixed post-earnings responses in the past two years. Over these last eight next-day sessions, JinkoSolar stock saw positive returns half of the time, including a 21% pop back in September 2020. The equity averaged an 8.2% swing after earnings, regardless of direction, though this time around options players are pricing in a much bigger 13.3% move.
Options traders have been very optimistic over the past 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JKS sports a 50-day call/put volume ratio of 4.11, which stands higher than 97% of readings from the past 12 months. This indicates calls are being picked up at a much quicker-than-usual clip.
Short sellers are already hitting the exits in droves, though there is still plenty of pessimism left to be unwound, which could push the shares higher. Short interest fell 13.2% over the last two reporting periods, but the 5.12 million shares sold short still make up for a considerable 11.3% of the stock’s available float.