Schaeffer's Trading Floor Blog

Stocks On the Move: Kate Spade & Co, Myriad Genetics, Inc., and SeaWorld Entertainment Inc

KATE, MYGN, and SEAS are moving sharply in Wednesday's trading

by 8/13/2014 11:16 AM
Stocks quoted in this article:

Around midday, three of the top market movers are apparel maker Kate Spade & Co (NYSE:KATE), diagnostic firm Myriad Genetics, Inc. (NASDAQ:MYGN), and theme park operator SeaWorld Entertainment Inc (NYSE:SEAS). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • KATE has partially rebounded from yesterday's post-earnings sell-off, spiking 7.5% to trade at $31.18. The rally comes in the wake of encouraging comments from Sterne Agee, which believes the retailer's fundamentals make for a potential buying opportunity. Not everyone agrees, however. In fact, short interest on Kate Spade & Co surged 55.6% during the latest reporting period, and now comprises 5.9% of the equity's float -- which would take more than a week to cover, at KATE's average daily trading volume.

  • MYGN has plummeted nearly 10% to churn near the $35.19 level, as disappointing full-year earnings guidance weighs on the stock. Nevertheless, the shares remain nearly 68% higher on a year-to-date basis, and earlier took a bounce off of their 160-day moving average. Should this trendline support hold up, it could provoke a massive short-squeeze situation. Roughly half of Myriad Genetics, Inc.'s float is sold short, which would take more than 10 weeks to buy back, at the equity's typical trading levels.

  • SEAS touched a record low of $19.68 earlier, and at last check, was still off nearly 30% to rest at $19.75. Prompting the sell-off were the company's disappointing second-quarter results and reduced full-year sales guidance. Given this bleak technical and fundamental picture, SeaWorld Entertainment Inc could be in danger of getting hit with bearish brokerage notes. After all, the stock's consensus 12-month price target is perched at a lofty $38.30, and 75% of analysts following the shares rate them a "buy" or better.


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