A Reversal for Cabelas Inc Is Not Near. The Stock Gaps Up

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The stock of Cabelas Inc (CAB) gapped up by $2.06 today and has $53.54 target or 36.00% above today’s $39.37 share price. The 8 months technical chart setup indicates low risk for the $2.27 billion company. The gap was reported on Oct, 28 by Barchart.com. If the $53.54 price target is reached, the company will be worth $817.20M 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 is up 17.80% or $5.95 after the news, hitting $39.37 per share. About 5.25 million shares traded hands or 157.35% up from the average. Cabelas Inc (NYSE:CAB) has declined 41.08% since March 25, 2015 and is downtrending. It has underperformed by 41.31% the S&P500.

Out of 11 analysts covering Cabela’s (NYSE:CAB), 4 rate it “Buy”, 0 “Sell”, while 7 “Hold”. This means 36% are positive. Cabela’s was the topic in 14 analyst reports since July 27, 2015 according to StockzIntelligence Inc.

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

The institutional sentiment decreased to 1.16 in Q2 2015. Its down 0.31, from 1.47 in 2015Q1. The ratio dived, as 29 funds sold all Cabelas Inc shares owned while 89 reduced positions. 42 funds bought stakes while 95 increased positions. They now own 55.00 million shares or 0.41% less from 55.23 million shares in 2015Q1.

Mccarthy Capital Corp holds 100% of its portfolio in Cabelas Inc for 1.51 million shares. Hirzel Capital Management Llc owns 2.07 million shares or 10% of their US portfolio. Moreover, Beddow Capital Management Inc has 4.79% invested in the company for 273,595 shares. The Texas-based Keypoint Capital Management Llc has invested 4.58% in the stock. Caerus Global Investors Llc, a New York-based fund reported 24,149 shares.

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