Schaeffer's Trading Floor Blog

Stocks On the Move: The Hain Celestial Group, Inc., Amicus Therapeutics, Inc., and American Eagle Outfitters

HAIN, FOLD, and AEO are moving sharply in Wednesday's trading

by 8/20/2014 12:58 PM
Stocks quoted in this article:

Markets are trading modestly higher ahead of this afternoon's release of the Federal Open Market Committee's (FOMC) latest meeting minutes. Among specific equities, however, three of the day's biggest market movers are organic food issue The Hain Celestial Group, Inc. (NASDAQ:HAIN), biopharmaceutical firm Amicus Therapeutics, Inc. (NASDAQ:FOLD), and retailer American Eagle Outfitters (NYSE:AEO). Here's a quick roundup of how HAIN, FOLD, and AEO are performing on the charts so far.

  • HAIN is up 10.9% today to trade at $96.36, as a record showing in the earnings confessional overshadows a nut butter recall. Ahead of today's bull gap, the stock was sitting on a 4.2% year-to-date loss, yet HAIN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.15 -- in the 78th annual percentile -- indicates a preference for long calls over long puts in recent weeks. With a healthy 7.4% of the equity's float sold short, though, a portion of this activity may have been a result of shorts hedging against any earnings-induced upside. At present, it would take more than seven sessions to cover these shorted shares, at the security's average daily pace of trading, meaning if The Hain Celestial Group, Inc. continues its run up the charts, there is plenty of room for a short-covering rally to ensue.

  • Positive late-stage drug trial results and a pair of price-target hikes from Cowen and Company (to $14 from $9) and Leerink (to $9 from $6) have sent shares of FOLD nearly 30% higher today. At last check, the equity was lingering near $5.94, after earlier tagging a fresh 52-week peak of $5.99. Today's upward trajectory is just more of the same for Amicus Therapeutics, Inc., which is up 153% in 2014, so it's not surprising to see sentiment tilted toward the bullish side. All three covering analysts maintain a "strong buy" recommendation toward the stock, and, although short interest accounts for 24% of the equity's available float, it would take less than one session to cover, at FOLD's average pace of trading.

  • Jefferies this morning raised its price-target on AEO to $20 from $17 and reiterated its "buy" rating, after the company posted a better-than-expected second-quarter earnings report. Against this backdrop, the stock has rallied more than 8%, and is lingering near levels not seen since April. Additional bullish brokerage notes could be on the horizon, should American Eagle Outfitters maintain this momentum. No fewer than 75% of covering analysts maintain a "hold" or worse suggestion toward the stock, and the consensus 12-month price target of $11.98 stands at a discount to the security's current perch at $12.56.

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