The online dating name will join the S&P 500 later this month
The shares of Match Group Inc (NASDAQ:MTCH) are surging today, after news that the online dating name will join the S&P 500 index (SPX) later this month. At last check, the stock was up 7.2% to trade at $158.81.
Today’s pop has MTCH on track for its fourth-straight daily gain, as well as gapping above pressure at the 180-day moving average. Before today, the equity was moving steadily higher since bouncing off the $130 level in mid-August, a trendline that has served as a floor for the stock’s pullbacks since November.
The majority of analysts are bullish on Match Group stock, with 12 of the 15 in coverage carrying a “buy” or better rating and the remaining three a tepid “hold.” Plus, the 12-month consensus price target of $173.22 is a 9.6% premium to current levels.
Meanwhile, the 12.7 million shares sold short account for 4.7% of the security’s available float. In other words, it would take nearly six days to buy back these bearish bets, at MTCH’s average pace of trading.
Now could be a good time to weigh on the stock’s next move with options. The equity’s Schaeffer’s Volatility Index (SVI) of 35% stands higher than 14% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.