Schaeffer's Trading Floor Blog

Stocks On the Move: Marrone Bio Innovations Inc, Coach Inc, and CBS Corporation

MBII, COH, and CBS are moving sharply in Friday's trading

by 8/8/2014 1:41 PM
Stocks quoted in this article:

U.S. stocks are comfortably higher this afternoon, as reports of easing tensions in Ukraine have offset concerns about the U.S. involvement in Iraq. Among the names making significant moves are pest management issue Marrone Bio Innovations Inc (NASDAQ:MBII), luxury retailer Coach Inc (NYSE:COH), and media titan CBS Corporation (NYSE:CBS). Here's a quick look at how MBII, COH, and CBS are faring on the charts today.

  • MBII is bucking the broad-market trend, down 43.3% at $5.41. The stock earlier touched a record low of $5.31, and was relegated to the short-sale-restricted list. The firm last night confessed to a wider-than-expected second-quarter loss, and announced the resignation of Chief Operating Officer Hector Absi. As such, and due to the impact of bad weather, Marrone Bio Innovations Inc said it was unable to provide annual guidance. In the wake of the news and the stock's subsequent decline, Baird downgraded MBII to "neutral" from "outperform," and cut its price target to $12 from $15. The consensus 12-month price target on the equity rests at a lofty $18.20 -- more than three times the stock's current price -- suggesting more negative analyst attention could be on the way.

  • COH has jumped 4.3% to $36.30, amid unconfirmed rumors of a potential $48-per-share bid from French luxury retailer Kering. Bulls are taking to the options pits to bet on more short-term upside for Coach Inc, as intraday call volume is running at six times the norm. Calls are outnumbering puts by a more than 4-to-1 margin, and traders have taken a particular interest in near-term options; the stock's 30-day at-the-money implied volatility has rocketed 27.1% higher to 32.6%. Digging deeper, it looks like speculators are buying to open the August 35.50 and 36 calls, and longer-term bulls are scooping up the out-of-the-money September 41 calls.

  • CBS is 3.5% higher at $58.89, after the firm topped analysts' second-quarter earnings estimates. In addition, CBS Corporation flexed some fundamental muscle by doubling its share repurchase plan, and hiking its quarterly dividend to 15 cents from 12 cents per share. In light of the stock's post-earnings upswing, RBC and Pivotal Research lifted their price targets, to $72 and $70, respectively -- both of which would mark new all-time highs for CBS. (ISI Group, on the other hand, cut its price target by $8 to $65.) Meanwhile, option bears could be running scared. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 0.92 stands higher than 97% of all other readings from the past year. In other words, option buyers have picked up CBS puts over calls at a near-annual-high clip during the past 10 weeks.

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