Schaeffer's Trading Floor Blog

Highs & Lows: Adobe Systems, General Motors, and Akamai Technologies

ADBE, GM, and AKAM saw new annual peaks today

by 12/19/2012 12:59 PM
Stocks quoted in this article:

Stocks are wavering around breakeven this afternoon, as Wall Street shifts its attention from this morning's hot-and-cold housing stats to the fiscal-cliff debate. Though markets are mixed, the number of equities tagging new highs is overshadowing those at new lows. The NYSE has seen 145 peaks and eight bottoms so far today, while the Nasdaq tallies 84 tops and 11 lows -- including a 20-month worst for Herbalife Ltd. (NYSE:HLF - 42.01). Among the stocks charting notable moves are Adobe Systems Incorporated (NASDAQ:ADBE - 38.13), General Motors Company (NYSE:GM - 27.55), and Akamai Technologies, Inc. (NASDAQ:AKAM - 41.48).

  • Software developer ADBE has enjoyed a rally in 2012, building itself up some 35% year-to-date, while outperforming the broader S&P 500 Index (SPX) by 12 percentage points during the past 60 sessions. But this technical standout has yet to be fully accepted by analysts. There are 13 "hold" or worse suggestions, compared to 10 "buy" or better ratings. Plus, the average 12-month price target weighs in at $35.24, which is a $3 discount to ADBE's new four-year peak of $38.25, snagged in late-morning action.

  • Following news that GM will buy back roughly 200 million shares from the U.S. government, investors lifted the automobile heavyweight to the $27.91 level -- its best price since August 2011. Today's upswing boosted GM's 2012 gain to 36%. However, short interest inched higher over the past month and currently accounts for nearly 8% of GM's available float, suggesting there are still some skeptics who have yet to buy into the automaker's comeback.

  • Cloud-based services provider AKAM saw its loftiest price since February 2011 today, when the shares jumped to the $41.64 level. The stock's overall progress looks pretty solid, as AKAM has tacked on more than 28% since the beginning of the year, and has outpaced the SPX by 11 percentage points over the past 40 sessions. Should the shorts continue to loosen their bearish grip, the security could be in store for additional upside. Over the past two reporting periods, short interest depleted by 19.5%, but still makes up a respectable 4.1% of AKAM's available float.

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