Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Sep 21, 2017 at 3:15 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading lower this afternoon, with the Dow at risk of snapping its nine-session winning streak. Among the names in the spotlight today are biopharmaceutical company Akari Therapeutics PLC (NASDAQ:AKTX), oil concern Transocean LTD (NYSE:RIG), and steel stock AK Steel Holding Corporation (NYSE:AKS). Here's a quick look at what is moving shares of AKTX, RIG, and AKS.

Akari Therapeutics Stock Skyrockets on Drug Study Plans

Akari Therapeutics stock has exploded today, last seen up 72.6% to trade at $9.61, after the company said it plans to launch two late-stage studies of its rare blood disorder drug, Coversin, following a meeting with the U.S. Food and Drug Administration (FDA). Today's jump ranks AKTX the top stock on the Nasdaq today, and earlier sent the shares to an intraday peak of $11.95 -- more than double yesterday's close, and in territory AKTX hasn't visited since May. AKTX now boasts a 39% year-to-date lead, and is pacing for its first close above its 200-day moving average in four months, before the stock's CEO-related bear gap. If the stock's rally continues, AKTX could garner bullish notes in the near term, as the two analysts following the stock still rate it a lukewarm "hold."

RIG Sinks on Early Contract Cancellation News

Swimming in the red today are shares of Transocean stock, last seen trading 8.6% lower at $8.93, after a subsidiary of Chevron terminated its contract with Transocean over its drillship earlier than expected. The cancellation, which is effective in November, will grant Transocean $148 million in contract termination fees. RIG stock, however, is now down 39% year-to-date. Today's plunge should break the oil stock's eight-day winning streak, and ranks RIG as the worst performer on the New York Stock Exchange (NYSE).

Shorts are likely cheering today's decline, as short interest on RIG has grown 23.4% during the past two reporting periods, and now accounts for a fifth of the stock's total available float. At the equity's average daily trading volume, it would take more than a week to cover all the shorted shares.

AK Steel Stock Slips on Output Data

Also trading lower today is AK Steel stock, last seen down 2.4% at $5.50, after the World Steel Association reported a 6.3% rise in global crude steel production last month. This is more of the same for AKS stock, which has lost roughly 46% of its value since the start of the year, pressured by its 10-week and 20-week moving averages.

Despite its performance, options traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have certainly upped the bullish ante of late. AKS sports a 10-day call/put volume ratio of 16.04 -- just 7 percentage points from an annual high. In other words, traders have bought to open 16 AKS calls for every AKS put in the past two weeks.

Published on Sep 22, 2017 at 9:27 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Dow futures are signaling a lower open due to renewed fears surrounding North Korea. Among specific stocks in focus today are used car retailer CarMax, Inc (NYSE:KMX), athletic apparel retailer Finish Line Inc (NASDAQ:FINL), and telecom stock Sprint Corp (NYSE:S). Here's a closer look at what's moving shares of KMX, FINL, and S. 

KMX Stock Rises After Earnings Beat

CarMax stock is up 2.7% in pre-market trading, after the company's better-than-expected fiscal second-quarter earnings report. The shares just hit a two-year high of $69.98 yesterday before closing at $68.84, up 26% year-over-year. 

Despite this promising performance on the charts, many analysts have remained bearish. At the moment, half the brokerage firms covering KMX rate it a "hold" or "strong sell," and the shares are now trading in line with their average 12-month price target. As such, today's post-earnings pop could result in a round of bullish analyst attention. 

Short Sellers Cheer Disappointing Finish Line Earnings

Finish Line stock has shed 9.4% in electronic trading, due to lackluster fiscal second-quarter earnings. As of their close at $9.22 yesterday, the shares had already dropped more than half their value in 2017, hitting an eight-year low of $6.90 in late August. 

Short sellers would love for this price action to continue. These bearish bets increased by almost 16% over the last two reporting periods, and the 11.8 million FINL shares now sold short are the most since at least 2002. If the company's disappointing quarterly report induces short sellers to double down on the retailer, more losses could be in store. 

Sprint Stock in Focus as T-Mobile Talks Heat Up

Shares of Sprint are up 3.6% in pre-market trading, after Reuters reported the company is closing in on a merger with T-Mobile. The stock rallied a few days back on similar speculation, but subsequently cooled to close yesterday at $8.03, putting it below its year-to-date breakeven point. 

In the options pits, traders have been focusing on call buying. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day put/call open interest ratio of 10.11, which ranks in the 94th annual percentile. 

Published on Sep 22, 2017 at 10:03 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on biotech stocks Versartis Inc (NASDAQ:VSAR) and Intercept Pharmaceuticals Inc (NASDAQ:ICPT), as well as luxury retailer Tiffany & Co. (NYSE:TIF). Here's a quick roundup of today's bearish brokerage notes on shares of VSAR, ICPT, and TIF.

VSAR's Drug Fail Leads to a Flurry of Bearish Analyst Attention

VSAR stock is currently down a whopping 86% to trade at $3.02, a new record low. Late Thursday, Versartis said its experimental drug somavaratan, a treatment for growth hormone deficiency in children, failed to meet its main goal in a late-stage study. As a result, the biotech stock received three downgrades, including to "underweight" from "overweight" at Barclays. VSAR stock also was hit with no fewer than five price-target cuts, including to $3 from $45 at Cowen. 

In the options pits, traders have preferred calls over puts lately. VSAR has a 10-day call/put volume ratio of 3.96 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which means calls have outnumbered puts by nearly a four-to-one ratio in the past two weeks. Should VSAR stock continue to crumble, it could lead to an unwinding of these bullish bets.

FDA Warning Prompts Analysts To Cut ICPT Price Targets

Intercept Pharmaceuticals is down 10.3% to trade at $66.12 -- a new three-and-half year low -- extending yesterday's slide, after the Food and Drug Administration (FDA) issued a warning that some patients were being incorrectly dosed with the company's liver disease drug, Ocaliva, which increases the risk of serious liver injury and death. The warning echoes that of an Intercept Pharmaceuticals letter earlier this month. As a result, three brokerage firms issued price-target cuts, including to $50 from $75 at Morgan Stanley -- territory not charted in four years. ICPT stock has shed 38.5% year-to-date.

Despite Intercept's fundamental concerns and the stock's poor performance lately, 10 of the 15 brokerages covering ICPT rate the shares a "strong buy" or "buy." This indicates that there is plenty of room for downgrades, should the equity continue to struggle.

Goldman Downgrades TIF Stock As New Chairman Is Named

Roger Farah, formerly of Ralph Lauren, was named Tiffany's new chairman last night, as the luxury retailer looks to jump-start growth. Goldman today downgraded TIF stock to "neutral" from "buy," while cutting its price target to $94 from $106. TIffany's stock is currently down 2.4% to trade at $87.72, on pace to breach its 200-day moving average, which contained the shares' pullback in August.
 
Options traders have been upping the bullish ante on TIF. The stock has racked up a 10-day ISE/CBOE/PHLX call/put volume ratio of 1.96 -- in the 79th percentile of its annual range, reflecting a healthier-than-usual appetite for Tiffany's calls over puts lately.
Published on Sep 22, 2017 at 11:02 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on e-commerce powerhouse eBay Inc (NASDAQ:EBAY), pharmaceutical company Ascendis Pharma (NASDAQ:ASND), and aerospace concern Boeing Co (NYSE:BA). Here's a quick roundup of today's bullish brokerage notes on shares of EBAY, ASND, and BA.

Benchmark Ups Price Target on EBAY

Benchmark raised its EBAY price target to $45 from $40, but at last check, the stock was trading 0.3% lower at $38.13. The online auction site operator is cooling its heels after touching a record high of $38.87 on Wednesday, and EBAY currently boasts a healthy year-to-date gain of more than 28%.

A few recent price-target hikes aside, analysts are generally skeptical toward eBay. Out of 24 brokerage firms following the stock, 15 maintain a "hold" or "strong sell" rating. If any of these skeptics follow Benchmark's lead and issue bullish notes in response to the equity's rally to new highs, it could draw more buyers to the table for EBAY.

Analysts Hike ASND Targets as Rival VSAR Gets Crushed

Credit Suisse raised its price target on ASND to $50 from $30, and Wedbush issued a hike to $65 from $36, after a failed late-stage trial for rival drugmaker Versartis (VSAR) -- with Wedbush analyst Liana Moussatos calling the setback "game over" for VSAR. While VSAR has plummeted 86% to trade at $2.97, Ascendis shares are up 35.1% at $37.48 -- and earlier set a new record high of $42, placing former round-number resistance at $30 firmly in the rearview.

Ahead of this positive news for ASND, analysts were already upbeat on the stock. Among the five analysts tracking the biopharma name, four maintain "strong buy" ratings.

Boeing Extends Its Record-Setting Streak

After the Dreamliner parent upped its Southeast Asia order forecast amid strong demand, Cowen and Company raised its price target on Boeing to $315 from $300, alongside Jefferies, which raised to $300 from $275. The high-flying Dow stock is trading up 1% at $258.66, and hit a new record high of $259.30 earlier -- marking its sixth consecutive new intraday peak. 

Speculative players are looking to take part in BA's impressive uptrend. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BA sports a 10-day call/put volume ratio of 1.81, which sits in the 98th percentile of its annual range. This suggests calls have been bought to open over puts at a faster-than-usual clip in recent sessions.
Published on Sep 22, 2017 at 2:48 PM
Updated on Mar 19, 2021 at 7:15 AM
  • 5-Minute Market Rundown
The week started off strong for the major stock indexes, with the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) climbing to record highs leading up to and just after the Fed's highly anticipated September meeting. However, the Dow's win streak was snapped at nine sessions, and its string of record closes ended at seven, as expectations for a December rate hike grew. In addition, an ugly week for Apple -- despite the iPhone 8 release -- and escalating tensions with North Korea also weighed on stocks toward the end of the week.

All Eyes on Yellen

Janet Yellen & Co took center stage this week, as the Federal Open Market Committee (FOMC) hosted its two-day policy meeting. The central bankers emerged on Wednesday with a plan to begin unwinding the Fed's massive balance sheet in October, and the generally hawkish tone lifted expectations for another rate hike by the end of the year. The announcement helped to lift bank stocks, too, with the SPDR S&P Bank ETF (KBE) currently attempting to extend its Fed Week win streak. However, gold suffered its worst day in months after Yellen took the podium, bucking the trend of a Fed Week boost for gold exchange-traded funds (ETFs).

Apple Stock Set for Horrible Week, Worse-Than-Usual September

As of this writing, Apple stock is pacing for its worst week since April 2016. The equity -- not to mention several Apple suppliers -- was slammed on Wednesday, amid negative reviews for the Apple Watch Series 3. Specifically, people complained of connectivity and battery limitations. In addition, many analysts opined that iPhone 8 pre-orders looked weak, and the new phone seemed to debut to lackluster fanfare on Friday -- possibly as fanboys await the $999 iPhone X, which won't be out until November. 

However, Apple has historically been one of the worst stocks to own in September, and this year appears to be no different. While the stock has averaged a monthly loss of 4.2% over the past 36 Septembers, according to data from Schaeffer's Quantitative Analyst Chris Prybal, it is currently down 8% month-to-date. Amid the noise, traders could soon focus on Apple Watch rival Fitbit, or Google's smartphone event in a couple weeks, with the Alphabet unit just announcing a $1.1 billion acquisition in the mobile market.

North Korea, U.S. Exchange Threats

North Korea was back in the collective crosshairs again this week. On Tuesday, President Trump spoke to the United Nations (U.N.) General Assembly, vowing to "totally destroy" the rogue nation if the U.S. has to defend itself or its allies. In response, North Korean leader Kim Jong Un warned of the "highest level of hard-line countermeasure in history," and threatened to "tame the mentally deranged U.S. dotard with fire." The isolated country's next nuclear test could include a hydrogen bomb into the Pacific Ocean, according to North Korea's foreign minister. 

As a result, several defense stocks moved higher on Friday, including Boeing, which hit another record high with help from a pair of price-target hikes. The Dow stock could be even higher next week, too, as fund managers do some end-of-quarter window dressing. Also in the spotlight, the iShares MSCI South Korea Capped ETF (EWY). The South Korea ETF has historically performed well during the fourth quarter, averaging gains of 1%, 1.6%, and 2.1% for October, November, and December, respectively. 

Earnings Continue to Trickle In

A handful of earnings reports trickled in this week. Bed Bath & Beyond stock got demolished after lowering its full-year guidance, and analysts remained devoted to FedEx and Adobe even after an unimpressive earnings showing. General Mills also stepped into the earnings booth, with GIS stock subsequently sinking to two-year lows. Meanwhile, Finish Line and CarMax both reported earnings on Friday, with shares of the latter touching new highs.

T-Mobile, Tesla, Toy Stocks, and Tobacco

Speculation about a Sprint/T-Mobile merger started to swirl again, sending both stocks higher -- and translating into big gains for one TMUS options trader. Meanwhile, semiconductor stock Advanced Micro Devices got a mid-week jolt on rumors of a Tesla partnership, though the chatter was ultimately denied. Elsewhere, toy stocks were in the hot seat, with Hasbro, Mattel, and JAKKS Pacific stocks moving on reports of a Toys 'R' Us bankruptcy. Tobacco stocks were also making headlines, after the Food and Drug Administration (FDA) issued revised guidelines for tobacco manufacturers.

Fed Speeches, Healthcare Vote on Tap

The Fed will remain in the spotlight next week, with Fed Chair Janet Yellen highlighting a week full of central bank speeches. In the earnings confessional will be blue-chip athleisure issue Nike, as well as chipmaker Micron Technology. Insurers and healthcare stocks could also be in the spotlight, with the U.S. Senate expected to vote on the latest Republican healthcare plan. And, of course, we'll say goodbye to the third quarter -- which could translate into big gains and losses for these 40 stocks.
Published on Sep 22, 2017 at 3:19 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are lower this afternoon, with the Dow down as Apple paces for its worst week in more than a year. Among the names in the spotlight today are e-commerce car platform Carvana Co (NYSE:CVNA), technology solutions provider Hewlett Packard Enterprise Co (NYSE:HPE), and credit agency Equifax Inc. (NYSE:EFX). Here's a quick look at what is moving shares of CVNA, HPE, and EFX.

Analyst: 'Sell' Carvana Stock

Carvana stock is down 2.4% to trade at $16.40, after B. Riley started coverage with a "sell" rating, and set its price target on CVNA at $12, citing the company's forward pricing strategy increases execution risk. CVNA shares hit a record high of $23.70 on June 26 -- roughly two months after the stock's initial public offering (IPO) -- but have since retreated to the $16 region, which represents a 50% Fibonacci retracement of CVNA's May lows to its June high. 

Shorts are likely cheering today's decline, as short interest on CVNA has grown by 50% in the past two reporting periods. Short interest on Carvana now accounts for more than 60% of the stock's total available float, or 9.6 times the equity's average daily trading volume. 

Reports: Hewlett Packard Enterprise Plans on Cutting 5,000 Jobs

Moving in the opposite direction are shares of Hewlett Packard Enterprise stock, last seen trading 3% higher at $14.20, amid reports the company plans to slash 10% of its staff, or about 5,000 jobs. After notching a record high of $14.86 on May 16, HPE shares took a tumble after earnings, ultimately falling to familiar support in the $12.80 region back in June. Since then, HPE stock has rebounded about 11% to trade near the upper end of its 2017 trading range.

Although HPE shares have only gained roughly 5% year-to-date, options traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) are more bullish than usual toward the tech stock. HPE's 10-day call/put volume ratio of 40.46 stands in the 95th percentile of its annual range. In other words, options players have bought to open more than 40 HPE calls for every HPE put during the past two weeks. 

Equifax Stock Isn't Out of the Woods, Despite Recent Rise

After a rough month following its massive data breach, Equifax stock is trading 5.1% higher at $103.23 today, after Wells Fargo upgraded the stock to "outperform" from "market perform." The brokerage firm did, however, cut its price target on EFX to $127 from $135 -- still representing expected upside of 29.3% over EFX's closing price of $98.25 yesterday.

Since plummeting to a two-year low of $89.59 last week -- and touching record oversold territory -- Equifax shares have recovered some, and today are set for a fifth straight gain. However, the recent price action could be a "dead cat bounce," especially with the credit agency not out of the political woods, and CEO Richard Smith expected to get grilled by Congress in a couple weeks. Still, 10 of the 14 analysts following the stock rate it a "buy" or better, with not a single "sell" rating in sight.

Published on Sep 25, 2017 at 9:07 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on automaker General Motors Company (NYSE:GM), offshore driller Transocean Ltd (NYSE:RIG), and Amazon meal-delivery rival Blue Apron Holdings Inc (NYSE:APRN). Here's a quick roundup of today's bullish brokerage notes on shares of GM, RIG, and APRN.

GM Revs Higher on Upgrade to "Buy"

Deutsche Bank upgraded GM to "buy" from "hold" and hiked its price target to $51 from $36, implying expected upside of 29.4% from Friday's close at $39.42. General Motors stock is up 1.7% ahead of the bell, on pace to extend its recent breakout above its March highs in the $38.50 region.

As GM shares continue their positive price action, there's plenty of room for more analysts to climb on board. Among the 13 brokerage firms tracking the auto sector standout, eight maintain a skeptical "hold" rating -- providing ample opportunity for more upgrades down the road.

Transocean Lands a Rare Bullish Brokerage Nod

RIG scored an upgrade to "buy" from "neutral" at UBS this morning, along with a price-target boost to $15 from $9. In a note to clients, the brokerage firm cited rising demand expectations for floaters and jackups through 2020. Transocean shares have surged 4.7% in pre-market trading, after settling Friday's session at $9.32 -- down nearly 37% year-to-date.

Given the bleak price performance by RIG this year, it's no surprise to find that most analysts are considerably less optimistic than UBS. The stock sports just four "strong buy" recommendations, compared to nine "holds" -- and no fewer than six "strong sells."

Blue Apron Set to Bounce on New "Buy" Recommendation

APRN stock has tacked on 2.9% in electronic trading, bolstered by a new "buy" rating from Guggenheim. The firm set its price target for Blue Apron stock at $9, representing a premium of more than 73% to Friday's close at $5.19. It's been a rough road for APRN since its initial public offering (IPO) priced at $10 per share back in late June, due to competition concerns from Amazon, but the $5 level -- a 50% haircut from that IPO level -- has contained the stock's recent lows.

Meanwhile, short sellers maintain a massive stake against APRN, which could contribute to future volatility in the share price. Currently, despite a 10.8% drop in the past two reporting periods, a substantial 43.6% of the stock's float is dedicated to short interest. That accumulation represents nearly eight times APRN's average daily trading volume.
Published on Sep 25, 2017 at 9:31 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are pulling back this morning as the dollar weakens. Among specific stocks in focus today are social media site Facebook Inc (NASDAQ:FB), as well as biotech stocks Intercept Pharmaceuticals Inc (NASDAQ:ICPT) and NewLink Genetics Corp (NASDAQ:NLNK). Here's a closer look at what's moving shares of FB, ICPT, and NLNK. 

FB Shares Dip on Stock Plan Update

Facebook stock is down 0.6% at $169.48, after CEO Mark Zuckerberg announced he's dropping the company's plan to issue a new class of stock. Zuckerberg said FB's share price has appreciated enough that he can sell a large chunk of his stock to fund his philanthropic efforts while maintaining control of the company. The equity has gained over 31% in the past year, and could now be finding support atop its 50-day moving average. 

Meanwhile, short interest has been grinding higher on the security since hitting a record low in March. In the last reporting period alone, short interest rose almost 6% -- though these bearish bets still account for less than 1% of the total float. 

Intercept Replies to FDA Warning

Intercept Pharmaceuticals stock is up 7.2% at $66, after the company responded to the Food and Drug Administration's (FDA) warning of its liver drug, Ocaliva, saying it's taking steps to make sure the drug is prescribed and used properly. The shares still have plenty of ground to make up, though, as they were trading near $135 as recently as the end of July. Year-over-year, they're down over 63%. 

Most analysts are bullish on the stock, however. Specifically, ICPT has 10 "buy" or better ratings, versus five "hold" or worse recommendations. More telling still, the shares have an average 12-month price target of $157.76. 

NewLink Genetics Teams Up with AstraZeneca 

Shares of NewLink Genetics are up 6% at $11.65, after the company announced a clinical collaboration with AstraZeneca. NLNK stock has been all over the charts in 2017, trading as high as $25.16, with a year-to-date low of $5.90. Overall, the security is clinging to a small year-to-date lead. 

Plenty of traders foresee a pullback from NewLink Genetics, though. Short interest has been rising rapidly for months, and now more than 28% of the stock's float is sold short. Going by average daily volumes, this equates to almost 12 days' worth of buying power. 

Published on Sep 25, 2017 at 9:31 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on healthcare stocks Quest Diagnostics Inc (NYSE:DGX) and Tenet Healthcare Corp (NYSE:THC), as well as clothing designer VF Corp (NYSE:VFC). Here's a quick roundup of today's bearish brokerage notes on shares of DGX, THC, and VFC.

Raymond James Downgrades Quest Diagnostics Stock

Quest Diagnostics shares are down 7.1% out of the gate at $94.89, after Raymond James downgraded its outlook to "market perform" from "outperform," with the brokerage firm skeptical of new payment rates from the U.S. Centers for Medicare & Medicaid Services. Additionally, Canaccord Genuity says it sees DGX as one of the "losers" of the proposed 2018 Medicare reimbursement fees (subscription required) for the Protecting Access to Medicare Act (PAMA).

Since topping out at a record high of $112.96 on July 3, shares of the diagnostic testing name have been trending lower. Today's downside has the stock on track to breach the century mark for the first time since a late-April bull gap.

This could have some options traders scrambling. The October 100 strike is currently home to peak put open interest, and data from Trade-Alert indicates the bulk of the activity came at the hands of put writers.

RBC Lowers THC Stock Price Target

Ahead of this week's latest -- and possibly final -- attempt by Republicans to repeal Obamacare, Tenet Healthcare saw its price target cut to $19 from $25 at RBC. This still represents expected upside of 16.4% to last Friday's close at $16.32, though shares of THC are trading down 0.7% this morning at $16.21. 

The stock has been a long-term underperformer, though, down 26% year-over-year -- even following a recent M&A-related boost. Some of this downside has likely been a result of increased selling pressure from shorts, with short interest more than quadrupling over the past 12 months to 33.86 million shares -- a record high amount for the hospital stock.

KeyBanc Cites 'Tactical Opportunities' for VFC Downgrade

VFC stock is down nearly 0.5% this morning at $61.84. Weighing on the retail shares is a downgrade to "sector weight" at KeyBanc Capital Markets, citing "tactical opportunities" -- particularly with rival Under Armour.

Nevertheless, it's been a pretty strong run for the shares, which are up more than 21% since skimming the $51 in mid-May. Plus, a recent pullback from the stock's Sept. 6 annual high of $64.51 found support from the 50-day moving average, a trendline that kept a lid on the shares in May.

Short sellers have been hitting the bricks amid this upside, too. Short interest fell 15.1% in the two most recent reporting periods to 21.75 million shares. This represents a low 5.5% of VFC's available float. 

Published on Sep 25, 2017 at 3:09 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are lower this afternoon, after North Korea says the U.S. declared war. Among the names in the spotlight today are sports apparel retailer Under Armour Inc (NYSE:UAA), car parts distributor Genuine Parts Company (NYSE:GPC), and social media giant Twitter Inc (NYSE:TWTR). Here's a quick look at what is moving shares of UAA, GPC, and TWTR.

Under Armour Stock Scores Rare Upgrade

Under Armour stock is up 3.1% to trade at $16.91, after KeyBanc upgraded the sports apparel stock to "overweight" from "sector weight," citing the company's new appointment of COO Patrik Frisk and its shift in focus to improving its financial performance. The brokerage firm wasn't as optimistic about Under Armour's rival, VF Corp stock, which it downgraded to "sector weight."

Today's jump in UAA shares ranks the stock among the best on the S&P 500 Index (SPX). Not all analysts favor Under Armour stock, however. Of the 34 analysts following UAA, 85% rate it a "hold" or worse. UAA stock, in fact, has not fared well in 2017. Down 42% year-to-date, the stock hit a four-year low of $15.92 on Sept. 1, and has since seen tough resistance from its 40-day moving average. A gain today would effectively snap UAA's seven-day losing streak.

Genuine Parts Looks to Buy Alliance Automotive Group for $2B

Joining UAA stock among the best on the SPX is Genuine Parts stock, last seen trading 6.4% higher at $93.59. Driving the car parts stock higher is news that the company entered a definitive agreement to acquire Europe's Alliance Automotive Group for $2 billion. GPC shares are now poised to close above their 200-day moving average for the first time since June, and a short squeeze could help fuel the stock's fire. Short interest on GPC grew 11.6% during the most recent reporting period to 6.48 million shares. At the equity's average daily trading volume, it would take nearly two weeks to buy back all these shorted shares.

Twitter Stock Falls With Facebook Amid Tech Sell-off

Swimming in the red today is Twitter stock, last seen down 4% at $16.91 amid a broad sell-off in tech stocks, including sector peers Apple -- continuing its poor run post-iPhone 8 launch -- and Facebook -- down on news of CEO Mark Zuckerberg's scrapped plan for a new class of stock. Twitter shares have fallen 25.5% during the past 12 months, and recently backed down from the $18.50 region -- where TWTR was trading before a mid-July bull gap. The equity's average analyst price target is docked at $15.91 -- representing a 6% drop from current levels. What's more, all 24 analysts following the stock rate it a "hold" or worse, with not one "buy" endorsement in sight.

Published on Sep 26, 2017 at 9:29 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Stocks appear to be stabilizing following yesterday's risk-off session. Among specific stocks in focus today are semiconductor name NVIDIA Corporation (NASDAQ:NVDA), Ann Taylor parent Ascena Retail Group Inc (NASDAQ:ASNA), and biotech Axovant Sciences Ltd (NASDAQ:AXON). Here's a closer look at what's moving shares of NVDA, ASNA, and AXON. 

China AI Push Lifts NVIDIA Stock

Shares of NVIDIA are almost 3% higher before the open, after the company announced it's struck a deal to supply artificial intelligence-centered chips to some of China's largest tech companies, including JD.com and Alibaba. The stock closed yesterday at $171, sporting a year-over-year lead of more than 163%. Just last Friday, in fact, the security hit a record high of $191.20. 

Options traders -- who've been quite bullish on NVDA -- may want to consider short-term options. That's because the equity has a Schaeffer's Volatility Index (SVI) of 35%, which is only 14 percentage points from a 52-week low. This means volatility expectations for near-term contracts are rather muted at the moment. 

ASNA Puts Pressure on Shorts After Earnings

Ascena Retail Group has had a terrible year on the charts, sliding from a Dec. 9 annual high of $8.19 to yesterday's close of $2.17, while hitting an 18-year low of $1.65 in May. But a better-than-expected earnings report now has the shares pointed up 15% in pre-market trading. This sudden surge could deal a temporary blow to short sellers, who control 31.4% of the stock's float. At last night's close, this equated to 25 times the stock's average daily pace of trading.

AXON Stock Crushed by Alzheimer's Drug Failure

Axovant Sciences is set to sell-off this morning, down 74% in electronic trading, after the company's Alzheimer's drug failed in a late-stage study. At $24.25, the shares were up 95% year-to-date, hitting a two-year high of $27.98 on Friday. It's likely today's pending price action will eventually be met with negative notes from analysts. At the moment, seven of eight covering brokerage firms rate AXON stock a "strong buy," and its average 12-month price target stands at $29.25. 

Published on Sep 26, 2017 at 10:17 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on bank stock JPMorgan Chase & Co. (NYSE:JPM), restaurant chain Cheesecake Factory Inc (NASDAQ:CAKE), and biotech Genocea Biosciences Inc (NASDAQ:GNCA). Here's a quick roundup of today's bearish brokerage notes on shares of JPM, CAKE, and GNCA.

Deutsche Bank Downgrades JPMorgan Chase

Deutsche Bank downgraded JPMorgan Chase to "hold" from "buy," saying the Fed's plan to gradually raise interest rates may not boost bank stocks, and that "increased competition in investment banking/trading may erode some of JPM's recent gains." Nevertheless, the brokerage firm raised its price target to $96 from $90 -- though this sits just a hair above the equity's current perch -- while Instinet raised its JPM target price to $87 from $86.

At last check, JPM stock was down 0.3% to trade at $93.83, but it has added nearly 43% year-over-year, and last Thursday touched a new record high of $95.37. Analyst sentiment remains split, though. At last night's close, nine of the 17 brokerages covering JPM rated the stock a "hold," while the other eight said it was a "strong buy."

Store Traffic Concerns Spark Cheesecake Factory Stock Downgrade

CAKE is down 1.9% to trade at $40.81, after Wedbush downgraded it to "neutral" from "outperform," and slashed its price target from $44 to $52. The brokerage firm cited concerns over declining store traffic and growth in the food delivery sector as reasons for the downgrade.

Today's price action is just more of the same, considering CAKE stock has shed 40% since topping out at a record high of $67.14 in early May -- with its 30-day moving average provide stiff resistance since May. Plus, the equity touched a four-year low of $38.34 on Sept. 7. 

Some of this downside is likely a result of increased selling pressure from shorts. Short interest is up 17.4% from the May 1 reporting period to 9.84 million shares -- 23.25% of the stock's available float.

Genocea Stock Gutted After Layoffs, Drug Halt

Genocea Biosciences stock is down a whopping 65.5% to trade at $1.84, earlier hitting a new record low of $1.64, after the drug developer reduced its staff by 40%, and halted progress on its genital herpes treatment GEN-003, which was in late-stage clinical trials. As a result, Stifel downgraded GNCA to a "hold" from "buy," while reducing its price target to $2.50 from $15. Cowen and Company also issued a price-target cut, to $10 from $40.

While GNCA is currently short-sale restricted, short sellers have flocked to GNCA. Short interest increased by 8% during the last two reporting periods to 4.62 million shares. These bearish bets are at their highest point since June 2016, and represent a whopping one-fifth of GNCA's total available float.

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