Schaeffer's Trading Floor Blog

Biggest Movers: ConAgra Foods Inc, Nimble Storage Inc, and La-Z-Boy Incorporated

CAG, NMBL, and LZB are making notable moves in Wednesday's trading

by 6/18/2014 12:59 PM
Stocks quoted in this article:

In the latter half of today's session, three of the top market movers are packaged food concern ConAgra Foods Inc (NYSE:CAG), data storage developer Nimble Storage Inc (NYSE:NMBL), and reclining chair manufacturer La-Z-Boy Incorporated (NYSE:LZB). Here's a quick roundup of how this trio of names is performing on the charts so far.

CAG is down 7.9% this afternoon to churn near $30.25, after the company said its fourth-quarter results will miss analysts' estimates. A downgrade to "hold" from "buy" at Keybanc is only stoking the bearish flames. Although the stock was already in the red on a year-to-date basis heading into today's session, option traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open nearly seven calls for each put over the past 10 sessions. What's more, the resultant call/put volume ratio of 6.90 ranks in the bullishly skewed 83rd percentile of its annual range. ConAgra Foods Inc is slated to unveil its full fourth-quarter results before next Thursday's open.

Morgan Stanley upgraded NMBL to "overweight" from "equal weight" this morning, saying "We see early evidence of success in the enterprise market as 10% of recent new customer wins are large enterprises." As a result, the shares are 6.7% higher today to trade at $29.72. Although Nimble Storage Inc has shed nearly 50% of its value since hitting a record peak of $58.00 in late February, roughly three calls have been bought to open for every put over the past 10 sessions at the ISE, CBOE, and PHLX. However, with 16.2% of the stock's float sold short, a portion of this call buying may have been at the hands of short sellers hedging against an unexpected bounce.

LZB has plunged 8.9% to linger near $22.64 -- and has been placed on the short-sale restricted list -- after last night's dreary fourth-quarter revenue results prompted Raymond James to cut its price target on the stock to $32 from $34.50 (although this still represents a premium to the current share price). Due to today's decline, LZB is now staring at a roughly 27% year-to-date deficit -- and more bearish brokerage notes may be on the horizon. In fact, of the five covering analysts, four maintain a "buy" or better rating, compared to one "hold," and not a single "sell." Plus, the consensus 12-month price target of $31.90 not only stands at a stiff 40% premium to current trading levels, but also in territory yet to be charted by La-Z-Boy Incorporated.


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