In his first Executive Decision segment of last Friday's "Mad Money" program, host Jim Cramer spoke once again with Dylan Lissette, CEO of snack maker Utz Brands Inc. (UTZ) .
Utz is celebrating its 100-year anniversary this year and Lissette said the company has been growing brand by brand and geography by geography for decades. It is now the third-largest snack maker in the U.S.
Lissette said one reason Utz is growing is because it has been able to achieve a 70% customer repeat rate. Another secret to Utz's growth is digital media. Lissette said Utz increased digital marketing by 60% last year.
We last checked the charts of UTZ on Nov. 24 and wrote at that time, "Remembering that we do not have much price history to work with and rely on, aggressive traders could probe the long side of UTZ, risking to $17.00" We also gave a $23 price target.
Let's check out some updated charts for new and higher price targets.
In this daily bar chart of UTZ, below, we can see that prices have marched nicely higher from Thanksgiving. UTZ is trading above the rising 50-day moving average line and above the rising 200-day moving average line. The On-Balance-Volume (OBV) line is mostly flat/neutral but I am seeing a slight increase from this January, telling me that buyers of UTZ are becoming more aggressive with heavier trading volume registered on days when UTZ has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has just crossed to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of UTZ, below, we can see a fresh upside breakout to a new high. The software is projecting a potential upside price target in the $31 area.
In this weekly Point and Figure chart of UTZ, below, we see an upside price target in the $36 area.
Bottom line strategy: Traders who went long UTZ in November should continue to hold those positions but raise stop protection to $23 from $17. Our new price targets are $31 and then $36. Aggressive traders could add to longs on strength.
Do you have enough snacks to make it through March Madness? Asking for a friend.