WGO heads into its June 25 earnings report with options traders making an unusually aggressive bullish bet — even as analysts trim targets and short sellers hold a meaningful position in the stock.
The options signal is the sharpest data point in the setup. The put/call ratio has collapsed to 0.44, more than three standard deviations below its 20-day average of 0.73 — the most call-heavy positioning seen in nearly a year. That's a striking tilt toward upside exposure heading into the print, especially against a stock that has fallen 5% over the past week and nearly 5% over the past month to close at $28.32. The divergence between that price weakness and the aggressive call positioning sets up a clear tension: options traders are betting the print resolves to the upside, while the tape has been telling a different story.
Short interest complicates the picture without resolving it. Bears hold roughly 7.8% of the free float — a meaningful level, and one that has climbed about 21% over the past month. That build happened as the stock weakened, suggesting shorts added conviction on the way down. Yet the borrow market shows no signs of stress. Availability runs at nearly 387% of outstanding short interest, well clear of the 52-week tightest reading near 247%, and cost to borrow is a modest 0.54%. Shorts face no squeeze pressure from the lending side.
Analysts cut targets on both sides of the debate on June 23, the day before the print. Benchmark maintained its Buy but dropped its target from $48 to $40, while Roth Capital held Neutral and trimmed from $38 to $32. Both moves land the stock close to or below those revised targets at the current $28.32 price. The broader analyst drift since March has been consistently downward — Citigroup's late-May downgrade from Buy to Neutral, with a target slashed from $46 to $30, captured the mood. The mean target now sits at $40.18, implying roughly 42% upside, but the direction of travel has been one of steadily diminishing conviction. Bulls point to improving EPS trajectory in the second half of fiscal 2026 and towables share gains; bears flag weak retail conditions, channel imbalances, and a valuation — around 11x trailing earnings and below book value — that reflects genuine uncertainty rather than obvious cheapness.
Past prints have leaned negative. The March 2026 earnings release saw WGO fall over 6% on the day and nearly 14% across the following five sessions. The closest peer, THO, shed 6% over the past week — slightly more than WGO — suggesting sector-level pressure rather than idiosyncratic weakness heading in. Thursday's print will test whether the call-heavy options positioning reflects genuine fundamental optimism, or simply a contrarian bet against a stock that many analysts now think has already priced in the bad news.
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