Stocks On the Move: Arrowhead Research Corp, Shake Shack Inc, and Arista Networks Inc

Arrowhead Research Corp (NASDAQ:ARWR), Shake Shack Inc (NYSE:SHAK), and Arista Networks Inc (NYSE:ANET) are making major moves today

by Alex Eppstein

Published on Sep 11, 2015 at 2:22 PM

A number of stocks are making massive moves this afternoon, with analyst opinion driving much of the action. Among the day's big gainers are Arrowhead Research Corp (NASDAQ:ARWR) and Shake Shack Inc (NYSE:SHAK), while Arista Networks Inc (NYSE:ANET) ranks among the leading laggards. Here's a closer look at ARWR, SHAK, and ANET.

ARWR is up 11.5% at $6.38, thanks to promising preclinical data for its experimental cancer drug ARC-HIF2. The surge has helped close the stock's year-to-date deficit -- though the gap remains wide, at over 13%.

Today's surge is punishing Arrowhead Research Corp short sellers. One-quarter of the equity's float is sold short, representing more than 10 days' worth of trading, at typical volumes.

On the flip side, option bulls are welcoming the jump with open arms. ARWR's 50-day call/put volume ratio of 25.97 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) registers in the top percentile of its annual range. However, given the stock's longer-term technical struggles, some of this call buying may be of the protective kind.

Meanwhile, SHAK has shot 13.5% higher to trade at $55.11, despite being started at "market perform" at Cowen and Company -- which also handed out a $42 price target. However, the advance has petered out just south of the security's 10-week moving average -- above which the stock hasn't closed since early August.

If short sellers have their way, that trendline will again reject Shake Shack Inc. A brow-raising 62.7% of the equity's float is sold short.

Lastly, ANET has surrendered 10.3% to hover near $62.69, nearly wiping out its year-to-date progress. As a whole, this week has been nothing short of a disaster, with the shares dropping more than 16%, exacerbated by a sell-off among senior management -- including CEO Jayshree Ullal. 

On the sentiment front, William Blair reiterated a "market perform" rating today -- which represents a break from the prevailing trend. In fact, 70% of covering analysts rate Arista Networks Inc a "buy" or better. Option traders aren't so confident. ANET's 10-day ISE/CBOE/PHLX put/call volume ratio of 2.96 ranks just 3 percentage points from a 52-week peak.


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