Not a good buy right now for an impatient trader: upside looks limited versus nearby resistance while short-term momentum remains mixed/weak.
Today’s +6.96% pop puts price ($7.19) close to raised Street targets ($7.00–$7.50) and below a clear resistance zone (R1 ~$7.82), reducing risk/reward for immediate entry.
Hedge funds are aggressively reducing exposure (selling up 2118% QoQ), which is a notable institutional headwind.
Options positioning is very call-heavy (very low put/call ratios), which can signal optimism, but also implies crowded bullishness while implied volatility remains elevated.
Trend/momentum: MACD histogram is negative (-0.103) though “negatively contracting” suggests downside pressure may be easing, not a confirmed uptrend.
RSI(6) ~58.5: neutral-to-slightly-bullish, not overbought; supports “bounce” conditions but not a strong trend signal.
Moving averages: converging MAs typically indicate consolidation/indecision rather than a clean trend.
Levels to trade against:
Pivot: ~6.998 (key near-term line in the sand)
Support: S1 ~6.173 (next downside reference if pivot fails)
Resistance: R1 ~7.822 then R2 ~8.331 (overhead supply)
Pattern-based forward bias (similar candlesticks): slightly negative expectancy (-0.17% next day, -1.05% next week, -1.36% next month), which argues against chasing today’s strength.
Activity: today’s option volume is very low in absolute terms (57 contracts) yet shows as elevated vs 30D average (10.69x), implying occasional bursts of activity rather than steady institutional flow.
Volatility: IV30 ~95% vs historical vol ~75% → options are priced rich; good for option sellers, less attractive for buying premium.
IV percentile ~48 / IV rank ~21.6: not “peak panic,” but still elevated enough to imply the market expects sizable moves.
Technical Summary
Sell
3
Buy
8
Positive Catalysts
Latest reported quarter showed profitability/margin improvement: gross margin up to 45.14% (+5.10% YoY), EPS +45.83% YoY.
Analyst price targets were raised into late 2025/early 2026, reflecting perceived fundamental stabilization.
Strong call-skew in options suggests bullish trader sentiment and potential for upside continuation if price clears ~$7.82.
Neutral/Negative Catalysts
cluster around the current price ($7.19), implying limited near-term upside.
Net take: Wall Street is acknowledging improvement but still not endorsing a clear buy—targets sit near current price, limiting immediate upside for a “buy now” decision.
Influential/congress activity: No recent congress trading data available; insiders show no significant recent trend (neutral).
Wall Street analysts forecast DBI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DBI is 6.25 USD with a low forecast of 5 USD and a high forecast of 7.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast DBI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DBI is 6.25 USD with a low forecast of 5 USD and a high forecast of 7.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
2 Hold
0 Sell
Hold
Current: 6.740
Low
5
Averages
6.25
High
7.5
Current: 6.740
Low
5
Averages
6.25
High
7.5
UBS
Neutral
maintain
$7
AI Analysis
2026-01-08
Reason
UBS
Price Target
$7
AI Analysis
2026-01-08
maintain
Neutral
Reason
UBS raised the firm's price target on Designer Brands to $7.50 from $7 and keeps a Neutral rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.
UBS
Neutral
upgrade
$7
2025-12-10
Reason
UBS
Price Target
$7
2025-12-10
upgrade
Neutral
Reason
UBS raised the firm's price target on Designer Brands to $7 from $4.50 and keeps a Neutral rating on the shares. While there were some signs of progress in Designer Brands' Q3 report, topline challenges prevail, the analyst tells investors in a research note.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DBI
