Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Aug 25, 2017 at 9:40 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on retail stock Ulta Beauty Inc (NASDAQ:ULTA), burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG), and chip maker Marvell Technology Group Ltd. (NASDAQ:MRVL). Here's a quick roundup of today's bearish brokerage notes on shares of ULTA, CMG, and MRVL.

BMO Downgrades ULTA Stock After Earnings

Ulta Beauty shares are down 8.4% at $214.00, a new 15-month low, after the cosmetics retailer's same-store sales growth slowed last quarter and its current-quarter forecast came in below the consensus estimate -- overshadowing better-than-expected second-quarter earnings and revenue. In reaction, BMO downgraded ULTA to "market perform" from "outperform," and joined at least four other brokerage firms in lowering their respective price targets.

The stock has already been in a steady downtrend since its early June highs near $315, closing last night at $233.71, as short sellers have been ramping up the selling pressure. Since the April 1 report, short interest on Ulta stock has more than doubled to 2.68 million shares. 

CMG Stock Price Target Lowered at Credit Suisse

Citing rising avocado prices, Credit Suisse cut its price target on Chipotle Mexican Grill to $320 from $335 -- though this still sits at premium to the stock's current perch at $302.92. This comes as CMG shares stare at a nearly 20% year-to-date deficit, and hit a four-year low of $296 on Wednesday. There's still room for more analysts to lower their outlooks on the embattled stock, too. Despite its technical troubles, six brokerages maintain a "strong buy" rating, while the average 12-month price target is docked at a lofty $388.48.

Analysts Chime in on MRVL Stock After Earnings

Marvell Technology's second-quarter earnings beat drew mixed reactions from the brokerage bunch, with J.P. Morgan Securities and Jefferies lowering their respective price targets to $18 and $18.50. On the other hand, the stock earned price-target hikes from Craig-Hallum (to $21.50) and KeyBanc (to $23). This echoes the current set-up for the stock, with eight analysts maintaining a "buy" or better rating, versus seven "holds" and one "sell."

MRVL shares have surged 6% out of the gate, last seen trading at $16.90 -- extending a recent bounce off their 40-week moving average. Marvell Technology stock hasn't finished a week south of this trendline since July 2016, and is currently up roughly 31% year-over-year.

Published on Aug 25, 2017 at 10:14 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on drugmaker Adamas Pharmaceuticals Inc (NASDAQ:ADMS), online review concern Yelp Inc (NYSE:YELP), and tech stock  VMware, Inc. (NYSE:VMW). Here's a quick roundup of today's bullish brokerage notes on shares of ADMS, YELP, and VMW.

Rare Drug Approval Has ADMS Stock Rallying

Adamas Pharmaceuticals stock is up 44% to trade at $20.52 -- and touched a new annual high of $21.44 out of the gate -- after the Food and Drug Administration (FDA) approved the drugmaker's treatment for the involuntary movements of Parkinson's disease. Gocovri -- the only drug of its kind with regulatory approval -- is expected to be rolled out in the fourth quarter. In addition, MP Securities and Cowen and Company raised their price targets on ADMS stock, to $33 from $29, and to $55 from $45 -- more than double current trading levels -- respectively.

An astounding amount of Adamas stock is tied up in short interest. Over 30% of the stock's total available float is sold short. At ADMS' average daily trading volume, it would take more than 30 sessions to repurchase all of those pessimistic positions. This means shares of ADMS have plenty of fuel to keep surging forward. 

Jefferies Sees An Extended Rally For YELP 

YELP stock is up 0.8% to trade at $42.07, after Jefferies raised its price target to $49 from $43 -- in two-year-high territory. YELP shares have been on a tear since touching an annual low of $26.94 on May 10, rallying more than 55%, with help from an earnings-induced bull gap earlier this month.

Despite YELP's recent success, options traders have bought to open puts over calls at an accelerated clip. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), YELP's 50-day put/call volume ratio of 1.10 ranks 1 percentage point from a 12-month high. An unwinding of skepticism in the options pits could translate into added upside for the online retail stock.

Earnings Beat Has VMW Stock Sizzling

VMware stock is up 3% to trade at $103.80, and earlier notched a new three-year high of $104.81, after its second-quarter earnings beat analyst expectations. As a result, no fewer than 10 brokerages raised their price targets, including to $130 from $125 at RBC -- the brokerage firm's second price-target hike on VMW stock this week. VMware stock has now added 38% year-over-year.

The boost likely has quite a few short sellers nervous. Over 25 million shares of VMW are sold short, accounting for 37% of the stock's total available float. It would take more than 19 days for the shorts to fully cover their positions. If VMW continues to climb, ia short squeeze could push the tech stock to even higher heights.
Published on Aug 25, 2017 at 11:10 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks have managed a positive start to the day, with attention focused on the central bank summit fed speeches due this afternoon from Fed Chair Janet Yellen and European Central Bank President Mario Draghi. Among specific equities in focus are software developer Autodesk, Inc. (NASDAQ:ADSK), gaming retailer GameStop Corp. (NYSE:GME), and data analysis concern Splunk Inc (NASDAQ:SPLK). Here's a quick look at what's moving shares of ADSK, GME, and SPLK.

ADSK Stock Gaps Up to New Highs

Autodesk has received no fewer than 10 price-target hikes after reporting a narrower-than-expected second-quarter loss. Most notably, Evercore raised its price target on ADSK to $135 from $115.

ADSK stock is trading up 5.2% at $116.35, bringing its year-over-year gain to 69%. The software stock has been on a consistent uptrend since June 2016, and today's bull gap has propelled ADSK above recent congestion around $115 to a new record high of $119.73.

Prior to today's influx of post-earnings price-target boosts, analysts were already bullishly positioned on the outperforming tech name. Among the 20 analysts tracking ADSK, 15 carry a "buy" or "strong buy" recommendation.

GameStop Plunges to Multi-Year Low Post-Earnings

GME is trading down 12.4% at $19.07 after reporting a second-quarter earnings miss last night. Earlier, the stock fell as low as $18.72, marking its lowest price in nearly five years. Today's bear gap continues GME's longer-term downtrend following a brief period of consolidation in the $20-$22 range, with the stock down 34% year-over-year.

Options players were opting for bullish bets in the weeks leading up to GME's quarterly report. The stock's 10-day call/put volume ratio of 1.09 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 85th percentile of its annual range. This indicates a healthier-than-usual appetite for GME calls over puts

Splunk Shorts Hit the Bricks After Earnings

SPLK reported a second-quarter earnings beat, with revenue for the period also surpassing estimates. The software stock has garnered no fewer than 11 price-target hikes, along with a Susquehanna upgrade to "positive" from "neutral." Splunk shares are trading up 9.8% at $66.18, with a year-to-date gain now exceeding 29%. With more than 10% of the stock's float sold short, some of today's gains could be the result of a short-squeeze situation.

Published on Aug 25, 2017 at 1:38 PM
Updated on Mar 19, 2021 at 7:15 AM
  • 5-Minute Market Rundown
Coming off its biggest two-week loss since Brexit -- a bullish signal for blue-chip stocks -- the Dow bounced back sharply this week, even with President Donald Trump's threats of a government shutdown. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) also had positive weeks, with the COMP set to snap its longest losing streak since May 2016. What's more, small-cap stocks staged a rare outperformance over their larger-cap peers, bringing this crucial trendline test into focus next week.

This Stock Rally Still Has Legs

However, there's plenty of signs suggesting that U.S. stocks have not yet hit the euphoria stage associated with market tops -- although this rare data point on the CBOE Volatility Index (VIX) could point to another looming volatility spike. For starters, the number of SPX stocks hitting new 52-week lows reached an 18-month peak last week -- data that has historically created a "best time to buy stocks" scenario two months down the road. Plus, several sentiment and options indicators we follow show signs of increasing skepticism, an ideal setup for contrarian traders.

The recent broad-market headwinds also seemed to create a potential buying opportunity for Advanced Micro Devices,which recently bounced off a historically bullish trendline. And amid an impressive uptrend in the broader semiconductor sector, one analyst expects Micron shares to double.

Tech, Retail Earnings Hit

Earnings also had several tech stocks in focus this week, with LED specialist CREE earning a round of negative analyst attention after its results. Coming off last week's big earnings beat for Alibaba stock -- which prompted a record-high price target from one analyst -- Chinese interest stocks 58.com and Momo headed in entirely different directions. Meanwhile, ahead of the upcoming iPhone 8 launch, one analyst said to buy Apple.

Retailers continued to hold Wall Street's attention, too. While athletic apparel stocks were in analysts' bearish crosshairs early in the week, American Eagle stock hit a new low just before its post-earnings bull gap. And while Sears Holdings shares saw an unexpected pop after the embattled retailer's quarterly results, cosmetics names e.l.f. Beauty and Ulta weren't so resilient. GameStop shares are spiraling after earnings, too, though options traders were prepared.

Buyout Buzz Surrounds Biotechs

Drug stocks were among other big movers this week, with M&A chatter sending Paratek Pharmaceuticals soaring. Takeover rumors also swirled around fellow biotech Teva Pharmaceutical, though the stock carved out new multi-year lows following a round of price-target cuts. Elsewhere in the sector, Adamas Pharmaceuticals hit a new annual high, thanks to a regulatory win for its Parkinson's disease drug.

Jobs Data Hits Ahead of Labor Day Weekend

Looking ahead to next week, the economic calendar heats up ahead of the long holiday weekend. Jobs data and the initial reading on second-quarter gross domestic product (GDP) will dominate the conversation ahead of the September Fed meeting. And while Fed Chair Janet Yellen didn't offer any clues to an upcoming rate hike at today's Jackson Hole appearance, the utilities sector is one to watch ahead of the highly anticipated policy-setting meeting.
Published on Aug 25, 2017 at 3:02 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading higher this afternoon, as markets process comments made by Fed Chair Janet Yellen. Among the stocks in the spotlight today are drug developer XOMA Corporation (NASDAQ:XOMA), mineral exploration company Tahoe Resources Inc (NYSE:TAHO), and social media giant Twitter Inc (NYSE:TWTR). Here's a quick look at what's moving shares of XOMA, TAHO, and TWTR.

XOMA Soars on Licensing Deals

XOMA stock is up 27% to trade at $11.35, after the company announced two licensing agreements with Swiss pharmaceutical company Novartis. XOMA CEO Jim Neal said the agreements -- which will give Novartis the commercial rights and intellectual property to two of XOMA's drugs -- eliminate almost half of the company's outstanding debt.

Up 169% year-to-date, the biotech stock is poised to close above its 80-week moving average for the first time since July 2015. XOMA now ranks among today's best stocks on the Nasdaq, and a short squeeze could help its shares climb even higher. Short interest represents more than 14% of XOMA's total available float. At the equity's average daily trading volume, it would take more than a month to buy back the shorted shares.

Tahoe Stock Tanks After Guatemalan Court Upholds Ruling

Moving in the opposite direction is Tahoe Resources stock -- last seen down 17.8% to trade at $4.51 -- after reports that Guatemala's constitutional court upheld a lower court's decision to provisionally halt operations at one of the world's largest silver mines. Earlier, TAHO touched a record low of $4.27, and is now down 52% year-to-date. 

Today's plunge ranks TAHO as the worst stock on the New York Stock Exchange (NYSE). Some bears jumped ship too early, as short interest on TAHO decreased 10.2% during the last two reporting periods. Today, however, TAHO is on the short sale restricted (SSR) list.

Jefferies: There's a 'Clear Winner' in Social Media -- And It's Not TWTR

Shares of Twitter stock are down 1.6% to trade at $16.63, after Jefferies downgraded the stock to "hold" from "buy," and cut its price target to $16 from $20, citing Facebook as the "clear winner" in social media. TWTR stock has struggled to climb back from an ugly earnings reactions, which led to its steep July 27 bear gap. The shares are now staring up at their formerly supportive 80- and 200-day moving averages.

Jefferies isn't alone in its tepid opinion of Twitter shares. Of the 24 analysts following the stock,13 rate it a "hold," and 10 more rate it a "sell" or worse. In fact, not one analysts deems TWTR worthy of a "buy" rating.

Published on Aug 28, 2017 at 9:48 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on retailer Ulta Beauty Inc (NASDAQ:ULTA), entertainment stock Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY), and online retail giant Amazon.com, Inc. (NASDAQ:AMZN). Here's a quick roundup of today's bearish brokerage notes on shares of ULTA, PLAY, and AMZN.

ULTA Stock Pressured Once Again

Ulta Beauty stock is falling for a second straight session, last seen 0.8% lower at $210.60, following a price-target cut to $245 from $313 at Morgan Stanley. This comes after ULTA shares hit a 52-week low of $208.25 on Friday following a disappointing earnings report. For reference, the equity topped out at $314.86 in early June. Meanwhile, analysts are mostly split on the shares. While nine brokerages rate Ulta Beauty a "strong buy," 10 others say it's just a "hold." 

Dave & Buster's Stock Tests Key Chart Level

Raymond James this morning lowered its price target on Dave & Buster's stock to $70 from $77, though this remains well above the shares' current perch of $58.09. At this level, the security continues to test its 200-day moving average, while also sitting a few points above its year-to-date breakeven level.

Options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) still seem bullish. PLAY stock has a 10-day call/put volume ratio comes in at 3.25, and ranks in the 74th annual percentile. This reveals put buying has been unusually popular in recent weeks. 

Amazon-Whole Foods Deal Finalized

Amazon's purchase of Whole Foods officially closes today, and consumers are getting the first glance at the lowered grocery prices the deal will bring. SunTrust Robinson doesn't seem impressed, though, cutting its price target on AMZN to $1,190 from $1,220. Still, Amazon shares were last seen up slightly at $950, up 26% in 2017.

No matter if you're bullish or bearish, it looks like a good time to target short-term options. For instance, AMZN has a Schaeffer's Volatility Index (SVI) of 19%, which sits in the low 22nd annual percentile. This means volatility expectations for near-term contracts are pricing in unusually low volatility expectations. 

Published on Aug 28, 2017 at 10:13 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on electric car manufacturer Tesla Inc (NASDAQ:TSLA), biopharmaceutical company Horizon Pharma PLC (NASDAQ:HZNP), and electronics company Plexus Corp (NASDAQ:PLXS). Here's a quick roundup of today's brokerage notes on shares of TSLA, HZNP, and PLXS.

Goldman Analyst Remains Icy Toward TSLA

Tesla stock is down 2.1% to trade at $340.71, after Goldman Sachs analyst David Tamberrino said the vehicle maker's next capital increase will likely come in the third quarter -- not the first quarter -- of 2018, which could weigh on earnings. The analyst maintained a "sell" rating and ice-cold $200 price target on TSLA stock -- a steep discount to the shares' current price.

While the stock is off its June 23 record high of $386.99, Tesla has still turned in an impressive year thus far, up 60% year-to-date, with pullbacks contained by its 100-day moving average. Nevertheless, near-term options traders are more put-heavy than usual right now. Tesla's Schaeffer's put/call open interest ratio (SOIR) of 1.53 is at its highest point since July 31, and ranks in the 76th percentile of its annual range.

Analyst Ups Price Target on Horizon Stock

Horizon Pharma stock is up 1.8% to trade at $13.37, after Mizuho raised its price target by 33%, to $12 from $9, though the new target still represents a discount to the shares' current price. Horizon is also likely enjoying some biotech-industry tailwinds today, after Gilead Sciences bought Kite Pharmaceuticals. HZNP stock has been on the road to recovery since its earnings-induced bear-gap in early May. In fact, the drug stock has tacked on 30% in the last three months, and was aided by a solid earnings report earlier this month.

As a result, HZNP call buyers are coming out of the woodwork. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HZNP boasts a 10-day call/put volume ratio of 73.47, which ranks in the 92nd percentile of its annual range.

Upgrade Lifts Plexus Stock 

Plexus stock is up 3.5% to trade at $51.93, after the shares received an upgrade to "overweight" from "neutral" at J.P. Morgan Securities. PLXS stock is now on pace to end atop its 10-day moving average for the first time in a month. Just last week, the stock came dangerously close to new year-to-date lows, and remains 4.3% lower for 2017. 

Today's upgrade is very rare for Plexus shares, as analysts remain firmly entrenched in the bearish camp. All six of the brokerages covering PLXS rate the stock a tepid "hold." 

Published on Aug 28, 2017 at 10:29 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are mixed this morning, with the main focus staying on crude prices after Hurricane Harvey swept through Houston, Texas and surrounding areas over the weekend. Among specific equities in focus are pharmaceutical companies Gilead Sciences, Inc. (NASDAQ:GILD), AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO), and Biogen Inc (NASDAQ:BIIB). Here's a quick look at what's moving shares of GILD, AVEO, and BIIB

GILD Rallies Up to Resistance After KITE Deal

Gilead Sciences is hitting headlines this morning after striking a deal to buy Kite Pharma (KITE) for $11.9 billion, or $180 per share in cash. The announcement has GILD trading up 1.6% at $74.95. The shares remain pinned just below the $76 level, which -- despite multiple challenges -- hasn't been surmounted on a weekly closing basis since last November. This area is also home to GILD's descending 80-week moving average.

Given GILD's long-term underperformance on the charts, it's not surprising to see puts have gained popularity in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.58 ranks in the 90th percentile of all other ratings in the past year. This suggests there is a much healthier-than-usual appetite for bearish bets over bullish of late.

EU Approves AVEO Kidney Cancer Drug

AVEO is up 3.2% at $3.92 after its Fotvida renal cell carcinoma drug was approved for the European market, triggering a $4 million R&D payment from licensee EUSA Pharma. The biopharma stock gapped higher in June after the kidney cancer treatment was initially recommended for approval by the European Medicines Agency, and earlier today hit a new four-year high of $4.24. 

Some short sellers are likely hitting the exits today as AVEO rallies. Short interest on the stock ramped up by 43.5% in the most recent reporting period, and now accounts for a healthy 14.6% of AVEO's float -- plenty of fuel for a short-squeeze rally.

Biogen Bounces on Alzheimer's Data

Pharma concern Biogen is up 2.3% at $291.70 -- and eyeing another test of long-term resistance in the $295-$300 area -- after unveiling well-received data from its phase 1B study of aducanumab, its experimental Alzheimer's drug. Despite the roller-coaster price action in BIIB, the options market is pricing in extremely low volatility expectations at the moment. Biogen's Schaeffer's Volatility Index (SVI) of 21% ranks lower than 99% of all other readings from the past 12 months.
Published on Aug 28, 2017 at 1:42 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading mixed this afternoon, as markets weigh the effects of Hurricane Harvey. Among the stocks in the spotlight today are online travel company Expedia Inc (NASDAQ:EXPE), fitness device maker Fitbit Inc (NYSE:FIT), and biotech stock Juno Therapeutics Inc (NASDAQ:JUNO). Here's a quick look at what's moving shares of EXPE, FIT, and JUNO.

Expedia Stock Sinks After Reports CEO Might Work for Uber

Expedia stock is down 4.6% to trade at $142.49, after reports that the company's CEO, Dara Khosrowshahi, was offered the executive leadership position at Uber, replacing Travis Kalanick. Following the news, EXPE ranks among the most active Nasdaq stocks by volume today, with volume running at three times the intraday average. The online travel stock hit a record high of $161 on July 28, but has since shed 11.5%, and is pacing for its lowest close since May.

Options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) were upping the bearish ante before today, as evidenced by EXPE's 10-day put/call volume ratio of 2.15 -- in the 94th percentile of its annual range. Still, 17 of the 22 analysts following EXPE rate it a "buy" or better, leaving room for bearish notes, should Expedia stock continue lower. 

Fitbit Stock Gains After Company Launches New Smartwatch

Shares of Fitbit stock are up 5.9% to trade at $6.07, after the company took aim at the Apple Watch and launched its new Iconic smartwatch for presale on its website, which will be available worldwide in October. The company also announced partnerships with Visa and other credit card providers, to enable cardholders to make payments with the device, as well as Adidas, to deliver a special edition device and training programs next year.

Today's jump places FIT among the best stocks on the New York Stock Exchange (NYSE). After hitting an intraday high of $6.17 -- territory FIT hasn't seen since May -- the stock is poised to close above its 160-day moving average for the first time since October 2016. FIT's Schaeffer's put/call open interest ratio (SOIR) of 0.47 ranks in just the 8th percentile of its annual range, implying near-term option traders have rarely been more call heavy.

JUNO Gets Lift From Kite-Gilead Buyout Deal

Also trading higher at midday are shares of Juno Therapeutics stock -- last seen up 16.8% at $35.91 -- thanks to a halo lift from sector peer Kite Pharma stock, which trading at record highs after Gilead Sciences said it would buy the firm for $11.9 billion. Today's jump ranks JUNO among the best on the Nasdaq, and sent the stock to a new 52-week high of $37.50 earlier. Up 90% year-to-date, JUNO is poised to close above its 20-month moving average for the first time ever.

A short squeeze could help JUNO shares climb even higher, as short interest represents more than a quarter of JUNO's total available float. At the equity's average daily trading volume, it would take more than 13 sessions to buy back the shorted shares.

Published on Aug 29, 2017 at 9:27 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on athletic apparel retailers Finish Line Inc (NASDAQ:FINL) and Foot Locker, Inc. (NYSE:FL), as well as drug stock Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Here's a quick roundup of today's bearish brokerage notes on shares of FINL, FL, and VRX.

Finish Line Shares Set for Lowest Open in Eight Years

Finish Line last night issued a dreary profit warning and a "poison pill" strategy to fend off a hostile takeover, sending the shares tumbling nearly 30% in electronic trading -- set to open at levels not seen in eight years. A handful of brokerage firms have since weighed in bearishly, including Citigroup, which downgraded the stock to "sell" and slashed its price target to $5 from $14, territory not seen since early 2009. 

FINL shares settled yesterday at $10.42, down dramatically from their all-time high of $31.90 from nearly three years ago. As such, the equity continues to reward short sellers. Short interest on Finish Line rose by almost 12% during the last two reporting periods, and now accounts for roughly one-fourth of the stock's total float. 

Foot Locker Stock Hit With Sector Headwinds, PT Cut

On top of the Finish Line news, a price-target cut to $50 from $65 at Morgan Stanley has Foot Locker stock set to open 3.5% lower. This would be just more of the same from the shares, which have been crushed this year due to two post-earnings bear gaps, the most recent occurring earlier this month. In total, FL has given back about half its value year-to-date, last seen at $35.70. 

There are still some bullish holdouts in the analyst community, despite the security's dismal price action. Six brokerages still recommend buying Foot Locker, and the stock's average 12-month price target stands at $41.53 -- a 16.3% premium to current levels. This could leave FL vulnerable to additional bearish attention. 

Options Traders Bet on a Valeant Breakout

Valeant Pharmaceuticals stock caught fire during the summer months, surging as high as $18.25 on June 29. The shares have since given back much of those gains, though, closing last night at $14.23. And they're now on pace to open 1.6% lower, due to a price-target cut to $7 from $8 at Mizuho, which said it expects the company to miss its 2017 financial expectations. This puts VRX stock in jeopardy of surrendering a short-term foothold north of its 200-day moving average. 

Options traders are hoping the security resumes its positive price action. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 5.61 for Valeant, which is in the 100th annual percentile. Said differently, speculators have bought to open calls over puts at an extreme rate in recent weeks.

Published on Aug 29, 2017 at 10:08 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on biotech stock Juno Therapeutics Inc (NASDAQ:JUNO), yoga apparel retailer Lululemon Athletica Inc. (NASDAQ:LULU), and semiconductor stock Mellanox Technologies, Ltd. (NASDAQ:MLNX). Here's a quick roundup of today's brokerage notes on shares of JUNO, LULU, and MLNX.

JUNO Stock Hits New Highs After Upgrades

Juno Therapeutics stock is up 14% to trade at $41.58 -- a new annual high -- after Raymond James and Wedbush both upgraded the biotech stock to "outperform," and hiked their price targets to $45 and $42, respectively. In the wake of Gilead Sciences' deal to buy Kite Pharma -- which resulted in a bull gap for JUNO stock yesterday -- Wedbush believes more positive attention will come to Juno Therapeutics' CAR-T therapies.

JUNO stock has now more than doubled year-to-date. A short squeeze could create even more tailwinds for JUNO stock. The 15.73 million shares of JUNO sold short represent over a quarter of the stock's total available float. It would take over 13 days for the shorts to fully cover their pessimistic positions, at Juno's average pace of trading. 

LULU Stock Gets Price-Target Hike Ahead Of Earnings

Lululemon stock is down 0.7% to trade at $59.70, as a sector swoon for athletic apparel stocks overshadows a price-target hike to $64 from $60 at Susquehanna. Lululemon will report earnings on Thursday, and shareholders are hoping LULU stock can avoid the same fate as many of its sector peers. Since touching an annual low of $47.26 on May 31, LULU has tacked on 24%. 

In the options pits, traders have bought to open LULU calls over puts at an accelerated clip ahead of earnings. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LULU sports a 50-day call/put volume ratio of 2.62, which ranks 4 percentage points from a 52-week high.

Mellanox Stock Gets A 'Buy' Rating, Lofty Price Target 

Mellanox Technologies stock is up 0.9% to trade at $45.60, after Benchmark started coverage of the chip stock with a "buy" rating and a price target of $60. The new target implies expected upside of about 32% from MLNX's current price, and stands in territory not charted in over four years. MLNX stock has tacked on 12% year-to-date, but its 100-day moving average stifled a breakout attempt earlier this year. 

There are plenty of short sellers sniffing around MLNX. Short interest has increased by 6% during the last reporting period, and represents a healthy 7% of the stock's total available float. In fact, it would take over nine days to repurchase all of those pessimistic positions, at MLNX's average daily trading volume. 

Published on Aug 29, 2017 at 10:36 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are trading lower this morning after North Korea launched a missile over Japan, leading President Trump to announce that "all options are on the table" now. Among specific equities in focus are electronics retailer Best Buy Co Inc (NYSE:BBY), pharma company Acorda Therapeutics Inc (NASDAQ:ACOR), and gold producer Yamana Gold Inc. (NYSE:AUY). Here's a quick look at what's moving shares of BBY, ACOR, and AUY.

Best Buy Down Despite Earnings Beat

Best Buy reported better-than-expected second-quarter earnings before today's open, but has erased its pre-market gains to trade down 10.3% at $56.03. Traders are likely keying on remarks from CEO Hubert Joly, who said the robust 5.4% rise in same-store sales during the recently concluded quarter is not expected to continue, and added that it's "nearly impossible" right now to predict the impact of Hurricane Harvey on its full-year forecast.

Despite today's sell-off, BBY still sports an impressive gain of 44% year-over-year, and touched a record high of $63.32 on Aug. 24. Nevertheless, options players were bracing for a downside move post-earnings; BBY's Schaeffer's put/call open interest ratio (SOIR) of 2.43 ranks in the 80th annual percentile, as near-term options traders have rarely been more put-heavy in the last 12 months.

ACOR Sells Off on FDA Rejection

Acorda Therapeutics is making headlines after the FDA rejected its marketing application for Inbrija, ACOR's Parkinson's drug, as not "sufficiently complete." The disapproval has sent ACOR stock down 27% to $18.77, effectively erasing about two months' worth of hard-won gains for the drug stock.

Short interest on Acorda dropped more than 7% over the past two reporting periods, but still accounts for 20% of the stock's float. Short selling is temporarily restricted on ACOR due to today's price plunge, but the FDA setback could embolden more bears to place new bets against the stock in the short term.

AUY Options Traders Lean Towards the Bearish Camp

North Korea tensions have driven gold stocks through the roof this morning, as demand for safe-haven assets increases rapidly. AUY is up 0.9% to trade at $2.91, having backed down from an early surge above the $3 level -- which hasn't been conquered on a daily closing basis since April 21.

Despite AUY's low share price, options players remain skewed toward downside bets. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AUY's 10-day put/call open interest ratio ranks in the 69th percentile of all other ratings from the past year, indicating a healthier-than-usual appetite for bearish bets over bullish of late.

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