Schaeffer's Trading Floor Blog

Biggest Movers: Bristol-Myers Squibb Co, Cisco Systems, Inc., and Real Goods Solar, Inc.

BMY, CSCO, and RGSE are moving sharply in Thursday's trading

by 5/15/2014 2:04 PM
Stocks quoted in this article:

Heading into the final two hours of the session, three of the top movers are pharmaceutical concern Bristol-Myers Squibb Co (NYSE:BMY), tech giant Cisco Systems, Inc. (NASDAQ:CSCO), and alternative energy company Real Goods Solar, Inc. (NASDAQ:RGSE). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • BMY is down nearly 7% this afternoon to trade at $48.60, after BMO downgraded the stock to "market perform" from "outperform" due to concerns over the company's experimental cancer drug nivolumab. For the year, the stock is now 8.5% below breakeven. Nevertheless, the brokerage crowd is generally bullish toward Bristol-Myers Squibb Co. Specifically, 11 out of 18 analysts have assigned the shares a "buy" or better opinion; also, the equity's consensus 12-month price target of $55.06 stands 13.3% above the shares' current perch. If BMY continues to struggle, however, another round of downgrades (or price-target cuts) could exacerbate selling pressure on the pharmaceutical name.

  • CSCO has gained nearly 7% to hover at $24.34, following last night's successful turn in the earnings confessional. This news was met with a flurry of price-target hikes from analysts during the overnight hours, which are contributing to today's rally; in fact, only one other Dow component -- AT&T Inc. (NYSE:T) -- is in the green this afternoon. Longer term, Cisco Systems, Inc. has tacked on 20% since hitting an annual low of $20.22 on Dec. 13. Nevertheless, the stock's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 1.01 -- higher than 95% of similar readings from the past year. Should CSCO maintain its current technical trajectory, a mass exodus of option bears could lead to even greater gains on the charts.

  • Finally, RGSE has plummeted this afternoon, down 14.3% in the wake of last night's disappointing first-quarter earnings report. This is more of the same for the solar concern, which (at $2.57) has surrendered more than half of its value since tagging its year-to-date high of $5.65 on March 11. Not surprisingly, short sellers have been piling on Real Goods Solar, Inc. Nearly 20% of the stock's float is sold short, which represents 8.6 sessions' worth of pent-up buying power, at its average daily volume.


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