Schaeffer's Trading Floor Blog

Stocks on the Move: E-Commerce China Dangdang Inc (ADR), Extreme Networks, Inc, and Steel Dynamics, Inc.

DANG, EXTR, and STLD are moving sharply in Monday's trading

by 7/21/2014 1:31 PM
Stocks quoted in this article:

Heading into the final few hours of today's trading, three of the top market movers are Chinese Internet issue E-Commerce China Dangdang Inc (ADR) (NYSE:DANG), network infrastructure supplier Extreme Networks, Inc (NASDAQ:EXTR), and steel producer Steel Dynamics, Inc. (NASDAQ:STLD). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • DANG has been making some big moves over the past two weeks, thanks to a couple of sharp bounces off its 50-day moving average. The equity is continuing this upward momentum today, up 2.2% to trade at $12.76. Year-to-date, the stock has rallied almost 34%, yet 62% of covering analysts maintain a "hold" or "sell" recommendation toward E-Commerce China Dangdang Inc (ADR). What's more, the consensus 12-month price target of $12.30 stands at a discount to present trading levels. Should DANG continue to make its way up the charts, a re-evaluation of ratings from the skeptical brokerage bunch could help fuel the security's fire.

  • EXTR has surged roughly 14% today, nearly filling in its earnings-induced bearish gap from early May. Today's burst of buying power comes after the company reported preliminary fiscal fourth-quarter earnings results this morning that were well above consensus estimates. At last check, the stock was trading at $4.97, but was still 51% below the average 12-month price target of $7.50. Elsewhere, all but one of the six covering analysts maintain a "buy" or "strong buy" recommendation toward EXTR, despite the stock's roughly 29% year-to-date deficit. Extreme Networks, Inc will unveil its full quarterly report after the market closes on Thursday, Aug. 14.

  • Similar to sector peer AK Steel Holding Corporation (NYSE:AKS), STLD is getting a boost today amid word that Russian steel company Severstal has sold its two North American plants to the domestic steel suppliers for a reported $2.33 billion. At last check, shares of STLD were up 6.9% at $19.87 -- easily toppling previous congestion in the $19.50 area, and earlier tagging a three-year peak of $20.10. Today's option players are responding in kind, scooping up the contracts at a rate 30 times the intraday average. A number of option bulls are targeting a move north of $21, with the stock's September 21 and November 21 calls apparently seeing buy-to-open activity. Elsewhere on the fundamental front, Steel Dynamics, Inc. (NASDAQ:STLD) will take its turn in the earnings confessional after tonight's close. After matching or exceeding analysts' bottom-line estimates in each of the past eight quarters, the stock has gone on to average a single-session post-earnings gain of 1.3%.

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