Schaeffer's Trading Floor Blog

Biggest Movers: CONN's, Inc., ImmunoGen, Inc., and NPS Pharmaceuticals, Inc.

CONN, IMGN, and NPSP are moving sharply in Monday's trading

by 6/2/2014 12:37 PM
Stocks quoted in this article:

In early afternoon trading, three of the top market movers are appliance retail chain CONN's, Inc. (NASDAQ:CONN), as well as pharmaceutical issues ImmunoGen, Inc. (NASDAQ:IMGN) and NPS Pharmaceuticals, Inc. (NASDAQ:NPSP). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • CONN is up 4% at $48.49, following this morning's news of a first-quarter earnings beat. With the rally, the shares are now close to breakeven on a year-over-year basis. Turning to sentiment, 39.5% of CONN's, Inc.'s float is sold short, which would take more than two weeks to buy back, at the stock's average daily trading volume. In other words, if the shares can maintain their intraday trajectory over the next few sessions, a short-squeeze situation could materialize.

  • IMGN has slipped 7% this afternoon to trade at $10.99, despite yesterday's announcement of favorable clinical results from a Phase II trial of SAR3419 -- a treatment for diffuse large B-cell lymphoma (DLBCL). With today's move lower, the shares have now shed more than one-quarter of their value in 2014. Nevertheless, the brokerage bunch remains bullish toward ImmunoGen, Inc. Half of the 10 analysts following the equity give it a "strong buy" rating (versus three "holds" and two "strong sell" recommendations), and IMGN's consensus 12-month price target of $17.29 represents a 57% mark-up to the current price. In other words, the door is wide open for a potential round of analyst downgrades and/or price-target reductions.

  • Finally, NPSP is soaring this afternoon, up over 10% to wink at $34.33 -- more than double the share price from one year ago. Sparking the rally are reports of a potential takeover offer from Shire Plc. Despite NPS Pharmaceuticals, Inc.'s positive technicals and fundamentals, option traders have been less than impressed with the shares. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.50 rests just 14 percentage points from a 12-month bearish extreme. However, if NPSP can continue to climb the charts, a mass exodus of option bears could intensify buying pressure on the stock.

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