Schaeffer's Trading Floor Blog

Biggest Movers: Cyberonics, Inc., SunPower Corporation, and Tibco Software Inc.

CYBX, SPWR, and TIBX are moving sharply in Wednesday's trading

by 6/4/2014 11:44 AM
Stocks quoted in this article:

Around midday, three of the top market movers are medical device maven Cyberonics, Inc. (NASDAQ:CYBX), alternative energy issue SunPower Corporation (NASDAQ:SPWR), and tech firm Tibco Software Inc. (NASDAQ:TIBX). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • CYBX is down 5.7% as we approach midday to hover at $56.30, after earlier reporting fiscal fourth-quarter revenue that fell short of the consensus estimate. With the move lower, the shares are testing support atop their 80-week moving average, and are currently 14% south of breakeven on a year-to-date basis. On the sentiment front, however, analysts have expressed extreme optimism toward Cyberonics, Inc. All seven analysts covering the stock maintain a "strong buy" opinion, and the equity's average 12-month price target stands at a lofty $80.56. If today's struggles persist, a round of downgrades and/or price-target reductions could pressure CYBX even lower.

  • SPWR has gained over 9% today to trade at $34.99, thanks to a pair of promising fundamental developments. Specifically, the firm was selected to build a solar power system at Nellis Air Force Base; in addition, the U.S. decided to levy a duty on solar products manufactured in China, which should help the San Jose-based company compete with its foreign competitors. Taking a step back, SunPower Corporation is a long-term technical outperformer, advancing more than 85% year-over-year. Nevertheless, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 10-day put/call volume ratio of 1.25 -- with bearish bets outnumbering bullish on an absolute basis. What's more, this ratio is just 2 percentage points from a 12-month high. If SPWR continues to run higher, a capitulation among option bears may spell additional gains for the solar name.

  • Finally, TIBX is reeling this afternoon, down 6.2% to $19.50, following last night's disappointing preliminary second-quarter earnings results, which prompted a series of bearish brokerage notes. In fact, the stock earlier touched a fresh annual low of $18.20. Nonetheless, Tibco Software Inc.'s 50-day ISE/CBOE/PHLX call/put volume ratio of 10.43 ranks higher than 87% of comparable readings from the past year. Suffice it to say, an exodus among these option bulls could exacerbate selling pressure on the shares.

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