Schaeffer's Trading Floor Blog

Biggest Movers: Dick's Sporting Goods Inc, Orbitz Worldwide, Inc., and Red Robin Gourmet Burgers, Inc.

DKS, OWW, and RRGB are moving sharply in Tuesday's trading

by 5/20/2014 12:04 PM
Stocks quoted in this article:

Around midday, three of the top market movers are athletic products retailer Dick's Sporting Goods Inc (NYSE:DKS), online travel resource Orbitz Worldwide, Inc. (NYSE:OWW), and casual eatery Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • DKS fell to a new annual low of $44.11 earlier, and was last seen 17% south of breakeven at $44.13, thanks to a first-quarter earnings miss and weaker-than-expected full-year guidance. Exacerbating the negative effects of this news were a pair of bearish brokerage notes at Sterne Agee and SunTrust, which both downgraded the stock to "neutral" from "buy" (SunTrust also slashed the security's price target to $51 from $66). There's still plenty of room on Dick's Sporting Goods Inc's bearish bandwagon, though. Fourteen out of 20 covering analysts have doled out a "strong buy" rating on the stock, and the shares' consensus 12-month price target rests at a lofty $61.80, meaning additional downgrades and/or price-target reductions could be in the cards.

  • OWW is nearly 8% lower today to trade at $6.96, after the company announced a secondary public offering of 7.5 million shares of common stock , and revealed a large stakeholder is potentially preparing to divest its shares of OWW. In fact, since hitting a year-to-date peak of $9.96 in late February, Orbitz Worldwide, Inc. has shed 30% of its value. Not surprisingly, bears have been upping the ante on the travel website. Short interest rose nearly 8% during the last reporting period, and now nearly 6% of OWW's available float is sold short. At the stock's average daily volume, it would take more than a week to cover these bearish bets.

  • Finally, RRGB has tacked on more than 12% to wink at the $71.73 level, helped by a first-quarter earnings beat. This move higher is likely being cheered in the options pits, where the stock's 50-day ISE/CBOE/PHLX call/put volume ratio registers at 1.52 , and ranks in the 72nd percentile of its annual range -- pointing to a bullish bias among options traders. However, it's possible some of these calls buyers are short sellers hedging against potential upside in the shares of Red Robin Gourmet Burgers, Inc.; after all, 9% of the equity's float is sold short, which would take nearly two weeks to cover at RRGB's average daily trading volume.

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