Schaeffer's Trading Floor Blog

Stocks On the Move: Bally Technologies Inc., GoPro Inc, and Pixelworks, Inc.

BYI, GPRO, and PXLW are moving sharply in Friday's trading

by 8/1/2014 1:43 PM
Stocks quoted in this article:

U.S. stocks are extending yesterday's losses, pressured by a disappointing payrolls report for July. Among the names making notable moves are takeover target Bally Technologies Inc. (NYSE:BYI), photo equipment firm GoPro Inc (NASDAQ:GPRO), and semiconductor stock Pixelworks, Inc. (NASDAQ:PXLW). Here's a quick look at how BYI, GPRO, and PXLW are faring on the charts today.

  • BYI has bounced more than 29% today to trade at $77.70, with the shares vaulting higher on the heels of a buyout bid from Scientific Games Corp (NASDAQ:SGMS). Earlier in the session, BYI tagged a new record high of $84.66 -- north of the $83.30-per-share bid from SGMS. In light of today's M&A developments, Bally Technologies Inc. is likely benefiting from a short-squeeze situation. Following a 5.5% increase during the most recent reporting period, short interest now accounts for 11.3% of the stock's float -- or 9.2 times BYI's average daily trading volume.

  • GPRO has tanked 14.5% to $41.01, as last night's second-quarter earnings report failed to impress. Baird today upped its price target on GoPro Inc shares to $45 from $43, but that moderately bullish note hasn't done much to stem the bleeding.

    The big post-earnings decline has triggered a short-selling restriction for GPRO, and option volume is running at triple the intraday norm, as opportunistic traders look to place their bets. The most active option is the stock's weekly 8/1 43-strike call, which expires at today's close. According to the International Securities Exchange (ISE), some disheartened GPRO bulls are selling to close their out-of-the-money bets here, while others are writing new short calls at a volume-weighted average price of $0.13 per contract.

  • PXLW is also getting smacked by selling pressure following its latest turn in the earnings spotlight, despite a price-target hike to $12 from $10 at Roth Capital. The stock is down 23.1% at $6.05, paring its year-to-date gain to 25.5%. Pixelworks, Inc. is now on track to end the session below its 50-day and 80-day moving averages for the first time since May 9. Downgrades aren't too much of a risk going forward, as Roth Capital is the only firm following PXLW, and reiterated its "buy" rating with today's target hike. However, this under-the-radar stock could get hit with fresh bearish notes if more analysts decide to initiate coverage in the weeks ahead.

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