Schaeffer's Trading Floor Blog

Biggest Movers: Aruba Networks, Inc., GT Advanced Technologies Inc, and Hewlett-Packard Company

ARUN, GTAT, and HPQ are moving sharply in Friday's trading

by 5/23/2014 1:43 PM
Stocks quoted in this article:

In afternoon action, three of the top market movers are network access innovator Aruba Networks, Inc. (NASDAQ:ARUN), diversified tech name GT Advanced Technologies Inc (NASDAQ:GTAT), and computer giant Hewlett-Packard Company (NYSE:HPQ). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • ARUN is down more than 13% this afternoon at $17.37, on the heels of a poorly received fiscal third-quarter earnings report last night, and a round of price-target cuts from no fewer than four brokerage firms this morning. As a result, the equity is now sitting in the red on a year-to-date basis. On the options front, Aruba Networks, Inc.'s 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 5.19 ranks in the 84th percentile of its annual range. However, with nearly 12% of the stock's float sold short -- which would take roughly two weeks to buy back, at the average daily volume -- some of these bullish bets may have been at the hands of short sellers attempting to hedge their bets.

  • GTAT has rallied almost 8% this afternoon to hover at $15.89, despite a lack of notable drivers. Similarly, on a longer-term basis, GT Advanced Technologies Inc has advanced more than 250% since this time last year. On the sentiment front, however, 30% of the equity's float is sold short, which means it's possible some of today's gains are the result of short-covering activity. What's more, at GTAT's average daily trading pace, it would take six sessions to cover these bearish positions, leaving the door wide open for additional short-seller-induced upside.

  • Finally, HPQ is fresh off a new multi-year high of $34.09, hovering nearly 6% higher at $33.64, on this morning's bevy of price-target hikes. This positive brokerage attention comes in spite of Thursday night's mixed earnings report and downsizing announcement. Taking into account today's gains, Hewlett-Packard Company shares are now up more than 35% on a year-over-year basis. Nevertheless, there's still plenty of room on the bullish bandwagon, as 12 out of 21 covering analysts have doled out "hold" or worse ratings, and the stock's consensus 12-month price target of $34.58 is just a chip-shot away. If the Wall Street bears continue to capitulate, it could add fuel to HPQ's fire.

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