Schaeffer's Trading Floor Blog

Stocks on the Move: Finish Line Inc, PriceSmart, Inc., and Rent-A-Center Inc

FINL, PSMT, and RCII are moving sharply in Friday's trading

by 7/11/2014 11:45 AM
Stocks quoted in this article:

Around midday, three of the top market movers are athletic shoe peddler Finish Line Inc (NASDAQ:FINL), shopping warehouse operator PriceSmart, Inc. (NASDAQ:PSMT), and rent-to-own business Rent-A-Center Inc (NASDAQ:RCII). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • FINL has shed 5.6% today to trade at $27.22, after Sterne Agee downgraded the stock to "neutral" from "buy." With the move lower, the shares are in danger of finishing below their 120-day moving average for the first time since mid-April. Should the equity continue to struggle, there's plenty of room for additional bearish brokerage notes to come down the pike; in fact, nine out of 15 analysts covering Finish Line Inc have given it a "buy" or "strong buy" rating, with not a single "sell" recommendation to be found. On the fundamental front, the retailer will host its annual shareholder meeting next Thursday.

  • PSMT is currently off 6.8% to perch at $80.39, pushing its year-to-date loss beyond 30%. Earlier, the stock sank to a fresh annual low of $78.63, as well. Prompting the pullback was PriceSmart, Inc.'s fiscal third-quarter revenue miss last night. Meanwhile, in the options pits, the bears are firmly in control. During the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PSMT has racked up a put/call volume ratio of 0.71. This ratio ranks near the top quartile of all readings taken in the previous year, suggesting traders have scooped up long puts over calls at a quicker-than-usual clip in recent months.

  • Finally, RCII has plummeted 11.2% and now hovers near $25.81, following a disappointing second-quarter forecast last night, and subsequent price-target cut to $24 from $28 at Canaccord Genuity. From a longer-term perspective, the equity is off nearly 23% in 2014. This is good news for short sellers, though, as 17.2% of Rent-A-Center Inc's float is sold short (which would take nearly 18 sessions to buy back, at the stock's average daily trading volume). Looking forward, the company will officially report quarterly results after the close on Monday, July 21.


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