When it comes to measuring investor and market sentiment towards a stock or group of stocks, retail investors typically look at buying and selling activity. As revealing as this is, it comes with a few caveats. These warnings can often cloud the real sentiments or motives of participants in the stock market. For example, buying shares can be simple, meaning you can hope to make some profit, although selling is a different story.
An investor might sell stocks as part of a portfolio rebalancing, for tax purposes, because he sees a better opportunity somewhere and needs the money, or for a thousand other reasons. When it comes to selling, investors who believe the implications are always bearish may be missing the big picture. Today, the options market is in a different mood.
Unusual put option activity was seen in three stocks. The implications are that these puts (which make money when stocks fall) are not necessarily bearish, but rather insurance policies against assets that won’t be released. This applies to PepsiCo Inc. NASDAQ: PEP, Chevron company. New York Stock Exchange: CVXand even Suncore Energy Inc. New York Stock Exchange:SU.
Investors Protect With Pepsi Stock
As one of the low-beta stocks in the market, not known for its discounted prices or increased volatility, Pepsi stock and its current discount have likely attracted many buyers into the stock. These same buyers then turned to insuring their positions as a common risk management strategy.
PepsiCo stock forecast for today
$180.64
Growth potential 24.62%Hold
Based on ratings from 17 analysts
| High forecast | US$200.00 |
|---|---|
| Average forecast | $180.64 |
| Low forecast | US$155.00 |
PepsiCo stock forecast details
As of January 2025, Pepsi stock reported 33,914 put options contracts, up 59% from normal volume of 21,389 contracts. Investors need to understand the reasons for this recent activity so that they do not blindly follow in these footsteps, but actually explain the entire thesis behind the deal.
With Pepsi stock now trading up to 78% of its 52-week high price, it is officially in bearish territory, making it a clear buy target today. Franklin Resources officials decided to increase their stake in Pepsi shares by as much as 21.1% as of November 2024, bringing their net position to a high of $2.2 billion today.
Moreover, shareholders can now access Pepsi Stock’s $5.4 dividend payout, which translates to an annual dividend yield of up to 3.8%, which will also beat inflation in the United States. Ultimately, Wall Street analysts know this discount won’t last long, especially those at Deutsche Bank, which maintained its $184 price estimate for the shares as of December 2024, implying 29% upside from today’s share price.
Energy stocks will dominate in 2025
Analysts at Goldman Sachs said in their recent macroeconomic forecast for 2025 that of all commodities, oil has the greatest growth potential this year. With this recommendation, investors can understand that Warren Buffett is buying up to 29% of the stock. Occidental Petroleum Co. New York Stock Exchange: OXY over the past few quarters.
Chevron Stock Forecast Today
$174.87
Growth potential 11.49%Moderate purchase
Based on ratings from 17 analysts
| High forecast | $195.00 |
|---|---|
| Average forecast | $174.87 |
| Low forecast | US$160.00 |
Chevron stock forecast details
They can also understand the 54,357 put options purchased in December 2024 on Chevron stock, which is 52% more than the usual volume of 35,823 options. There are a lot more puts tied to this stock for a reason: It’s trading at 92% of its 52-week high, so these buyers are looking to pay up to protect their bullish momentum.
By locking in their profits without having to sell shares, investors are directly exposed to the 27% upside that UBS Group analysts are projecting for Chevron shares through December 2024, despite their recent $195 price target and buy. rating that accompanies them.
However, despite the bullish momentum, Chevron shares still offer shareholders a dividend payout of up to $6.52, which translates to an annualized dividend yield of up to 4.25% today.
Suncor Shares Have Great Upside Potential
As part of the energy play that both Buffett and Goldman are now aware of, Suncor stock has now earned its place in investors’ portfolios. This fact can be confirmed by the recent increase in put option volume on the stock, with 28,315 put options purchased, a 2,998% increase from the normal volume of 914 options.
Suncor Energy Stock Forecast Today
$58.00
Growth potential 45.51%Moderate purchase
Based on ratings from 9 analysts
| High forecast | $68.00 |
|---|---|
| Average forecast | $58.00 |
| Low forecast | $45.00 |
Suncor Energy Stock Forecast Details
This amount of stock insurance can be attributed to the growth potential that some Wall Street analysts believe exists, such as those at Royal Bank of Canada, which gave the stock an “outperform” rating as of January 2025 along with a $66 price target. stock valuation.
To prove these analysts right, Suncor stock would have to rise as much as 67.5% from today’s level. It’s no surprise that investors are doing everything they can to get out of their stocks. These analysts weren’t the only ones expressing optimism about Suncor stock; however, several institutional buyers have recently emerged.
These buyers include Sanders Capital, which increased its holdings by 0.2% as of November 2024. While that may not seem like much on a percentage basis, the new distribution brings her stake to $2.1 billion, or 4.6% ownership in the company. .
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