Schaeffer's Trading Floor Blog

Stocks On the Move: Keurig Green Mountain Inc, Salesforce.com, inc., and GameStop Corp.

GMCR, CRM, and GME are moving sharply in Friday's trading

by 8/22/2014 12:48 PM
Stocks quoted in this article:

The major equity indexes are hovering on both sides of breakeven this afternoon, as traders digest the newest round of developments between Russia and Ukraine. However, a number of equities are making big moves today, including java giant Keurig Green Mountain Inc (NASDAQ:GMCR), cloud concern Salesforce.com, inc. (NYSE:CRM), and video game retailer GameStop Corp. (NYSE:GME). Here's a quick roundup of how GMCR, CRM, and GME are performing on the charts so far.

  • GMCR rallied to the $135.99 mark earlier -- its highest perch on record -- but was last seen up 14.7% at $135.02. Stoking the day's buying power is a newly inked multi-year licensing agreement with Kraft Foods Group Inc (NASDAQ:KRFT), which was met with a price-target hike to $134 and a "buy" rating from Canaccord Genuity. More upbeat analyst notes could be on the horizon, which may help propel Keurig Green Mountain Inc even further up the charts. More than half of covering analysts maintain a "hold" or "strong sell" suggestion toward the stock, while the consensus 12-month price target of $121.67 stands at a discount to current trading levels.

  • A well-received quarterly earnings report and encouraging outlook -- as well as a price-target hike at Pivotal Research -- have sent shares of CRM up 8.3% today to trade at $60.35. What's more, this gap higher has the security trading comfortably north of previous resistance at its 200-day moving average, and back above the round-number $60 mark. From a contrarian perspective,CRM could be poised to add to these gains, should short sellers be forced to cover their bearish bets. At present, roughly 7% of the stock's float is sold short, and would take nearly 11 sessions to cover, at Salesforce.com's average daily pace of trading.

  • GME is also benefiting from a strong quarterly showing and a pair of upwardly revised price targets (although, Benchmark cut its price target for the stock to $31.24 from $33). At last check, the security was 5.5% higher at $42.71, but still remains roughly 14% lower year-to-date. Given the equity's longer-term technical struggles, it's no surprise to see sentiment swayed toward the bearish side. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GameStop Corp.'s 50-day put/call volume ratio of 1.62 ranks 1 percentage point from a 52-week peak, meaning puts have been bought to open over calls at a near-annual-clip in recent months. Elsewhere, short interest accounts for 27.5% of the stock's available float.

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