Schaeffer's Trading Floor Blog

Stocks On the Move: Key Energy Services, Inc., Nu Skin Enterprises, Inc., and RealPage, Inc.

KEG, NUS, and RP are moving sharply in Friday's trading

by 7/18/2014 11:35 AM
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Around midday, three of the top market movers are oil well servicer Key Energy Services, Inc. (NYSE:KEG), personal care maven Nu Skin Enterprises, Inc. (NYSE:NUS), and software concern RealPage, Inc. (NASDAQ:RP). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • KEG has plummeted nearly 13% to hover around $7.30, after issuing a lackluster second-quarter outlook last night, and receiving no fewer than three bearish brokerage notes, including a downgrade (to "sector perform") and price-target cut (to $9) at Howard Weil. The shares are now solidly in the red on a year-to-date basis, and trading below their 320-day moving average for the first time since early February. Additional bearish brokerage notes could be on the way, too. Four out of nine covering analysts still rate Key Energy Services, Inc. a "strong buy" -- compared to five "holds" and not a single "sell" -- and the equity's consensus 12-month price target rests at $10.42, or roughly 43% above the current share price.

  • NUS is down 8.2% to trade at $61.03 -- not far from the security's new annual low of $60.80, touched earlier. The sell-off is the result of a downgrade to "underperform" from "neutral" at BofA-Merrill Lynch. This isn't good news for Nu Skin Enterprises, Inc.'s option bulls. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a call/put volume ratio of 4.35, which is higher than 80% of other readings from the past year. If these optimistic option players capitulate amid NUS' technical weakness, additional losses could be on the way.

  • RP has dropped even more severely than the two aforementioned names, currently off approximately 20% at $17.10. Last night, the company offered up underwhelming preliminary results for the second quarter, including lower-than-expected revenue guidance. Subsequently, RealPage, Inc. was met this morning with bearish brokerage notes at JMP Securities, RBC, and William Blair. Meanwhile, short sellers are likely cheering RP's move lower, as 9.5% of the equity's float is sold short -- which would take eight sessions to buy back, at the stock's average daily trading volume.

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