Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Oct 4, 2017 at 10:04 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on drugmakers Teva Pharmaceutical Industries Ltd (NYSE:TEVA) and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), as well as toy stock Hasbro, Inc. (NASDAQ:HAS). Here's a quick roundup of today's bearish brokerage notes on shares of TEVA, MNTA, and HAS.

Teva Tanks on Mylan's FDA Win

Teva Pharmaceutical stock is down 11.8% at $16.60, after rival Mylan (MYL) received Food and Drug Administration (FDA) approval for a generic version of Teva's multiple sclerosis drug Copaxone. The regulatory nod came earlier than expected, with analysts at J.P. Morgan Securities opining that "The news adds to an already challenging near-term setup" for TEVA. Meanwhile, Barclays sliced its price target on TEVA shares to $21 from $23, and Cowen and Company cut its price target to $18 from $30 -- though these are still premiums to the stock's current perch.

TEVA stock has now shed nearly 50% of its value in 2017, and more bearish brokerage notes could come down the pike. Of the 20 analysts covering the shares, three still maintain a "strong buy" rating. Plus, the average 12-month price target of $23.41 is well above present trading levels.

Momenta Stock Sinks On Mylan Competition

Momenta Pharmaceuticals stock is also reeling on the Mylan news, as the company's own drug was expected to be the first generic Copaxone on the market. Pouring salt on the proverbial wound is a price-target cut to $16 from $17 at Barclays. At last check, MNTA stock was down 24.6% at $13.20 -- territory not charted in six months. The shares are now set to close the week below their 50- and 80-week moving averages, which have contained pullbacks in 2017.

Though the stock is short-sale restricted today, bearish bettors could continue to ramp up their exposure once the restriction is lifted. Short interest on MNTA jumped 8.7% in the two most recent reporting periods to 4.88 million shares -- accounting for nearly 8% of the equity's available float.

'My Little Pony' Expected to Be a Loss for Hasbro

Analysts at MKM Partners slashed their price target on Hasbro stock to $98 from $112, and cut their third-quarter sales forecast for the toymaker, citing concerns about the company's movie investments. Specifically, the analysts expect Hasbro's first in-house production, "My Little Pony: The Movie," to incur a loss of $6 million before movie-related toy sales.

In reaction, Hasbro stock has shed 0.3% to trade at $97.21 -- pulling back from its 50-day moving average, which is currently located near familiar resistance in the $98 region. Options traders are hopeful the stock can break out above these technical hurdles. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 2.14 ranks in the 79th annual percentile, meaning calls have been bought to open over puts at an accelerated clip of late.
Published on Oct 4, 2017 at 10:15 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are mixed this morning, with the Dow touching fresh record highs yet again. Among the stocks making moves this morning are snack and drink giant PepsiCo, Inc. (NYSE:PEP), as well as pharmaceutical stocks Mylan N.V. (NASDAQ:MYL) and Amicus Therapeutics, Inc. (NASDAQ:FOLD). Here's a closer look at what's moving shares of PEP, MYL, and FOLD.

PEP Stock Fizzles After Weak Sales

Shares of PEP are lower, down 2% to trade at $106.93, after beverage giant reported third-quarter sales that fell short of Wall Street estimates. In addition, Pepsi cut its forecast for full-year organic revenue growth. The stock has now dropped nearly 6% in the past month, and today's negative earnings reaction is just more of the same for PEP shares.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PEP options traders have favored calls over puts by a bigger-than-usual margin lately. The stock sports a 50-day call/put volume ratio of 2.92, ranking in the 4 percentage points from a 52-week high.  This indicates that PEP options buyers were picking up calls over puts at a faster-than-usual clip heading into earnings.

FDA Approval Has Mylan Stock Soaring

The Food and Drug Administration (FDA) today approved Mylan's generic version of Teva Pharmaceutical's (TEVA) Copaxone drug, to treat multiple sclerosis. As a result, MYL stock is up 18% to trade at $38.45, effectively erasing its earnings-induced August tailspin that pushed the equity to a four-year low of $29.39 on Aug. 15.

 A few recent option buyers could be kicking rocks. On the ISE, CBOE, and PHLX, Mylan stock has racked up a 10-day put/call volume ratio of 1.89 -- higher than 90% of all other readings from the past year.

Upbeat Drug Data Fuels FOLD Stock

Amicus Therapeutics stock is up 5.9% to trade at $15.74 -- and earlier notched a new two-year high of $16.60 -- after the firm released positive data for its Pompe disease drug. In addition, Baird issued a price-target hike to $18 from $16. FOLD stock is up a whopping 216% year-to-date, and had more than doubled in the past six months. 

A short squeeze could add even more fuel to FOLD's run. Short interest increased by 4% during the last two reporting periods, to 34.67 million shares, its highest point since mid-July. This represents over 21% of FOLD's total available float, and it would take more than eight days for shorts to fully cover their positions, at FOLD stock's average daily trading volume. This is a major source of buying power that could provide additional tailwinds for the biotech stock.
Published on Oct 4, 2017 at 10:20 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on video game maker Electronic Arts Inc. (NASDAQ:EA), semiconductor stock NVIDIA Corporation (NASADQ:NVDA), and biotech CytomX Therapeutics Inc (NASDAQ:CTMX). Here's a quick roundup of today's bullish brokerage notes on shares of EA, NVDA, and CTMX.

Electronic Arts Stock Dips Despite Bullish Analyst Note

Electronic Arts stock is down 1.2% to trade at $116.55, despite bullish attention from Barclays. The brokerage firm started coverage on the video game stock with an "overweight" rating and a price target of $129 -- in uncharted territory. Analysts there expect the company to benefit from the gaming community's shift to digital products. 

EA shares have been climbing the charts this year, adding roughly 50% in value in 2017. Recently pulling back from an Aug. 31 record high of $122.79, the security bounced off its 100-day moving average. Meanwhile, all but three of the 17 analysts following the stock rate it a "buy" or better, with not a single "sell" in sight.

Analyst Predicts Record Highs for NVIDIA Stock

Another security on Barclays' radar today is NVIDIA stock, last seen trading 0.5% lower at $178.55. The brokerage firm raised its price target to $200 from $140 -- record-high territory -- citing optimism for the company's position in the cryptocurrency market and the launch of its Volta-based graphic processing units (GPU). This is much of the same for the semiconductor stock, which has added 162% in value over the past year and hit a record high of $191.20 on Sept. 18. Not all analysts are convinced, however, as half of the 24 brokerage firms following the equity rate it a "hold" or worse. What's more, NVDA's average 12-month target price sits at $164.23 -- equating to an 8% drop from current levels. 

Amgen Deal Sends CytomX Stock to Fresh Highs

CytomX Therapeutics stock ranks among the top percentage gainers on the Nasdaq today, after the biotech announced its strategic collaboration with Amgen to co-develop new cancer treatments. As part of the deal, Amgen will pay CytomX $40 million and buy $20 million worth of its stock. In response, Wedbush and Nomura raised their price targets on CTMX stock to $37 and to $44, respectively.

After hitting an annual high of $24.67 earlier, the shares are trading at $23.42, up 23.3% on the day. The biotech stock has now more than doubled on a year-to-date basis, and short sellers are jumping ship. Short interest on CTMX decreased 4.7% during the last reporting period to just 1.22 million shares. It would still take more than three sessions to cover these shorted shares, however, at the equity's average daily trading volume.

Published on Oct 4, 2017 at 3:14 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading higher again this afternoon, with the Dow eyeing a sixth straight winning win. Solar stock Real Goods Solar, Inc (NASDAQ:RGSE) and biotech stock Motif Bio (NASDAQ:MTFB) are soaring, while specialty retailer Office Depot Inc (NASDAQ:ODP) is in the gutter. Here's a quick look at what is moving shares of RGSE, MTFB, and ODP.

Real Goods Solar Stock More Than Triples After Licensing Deal

Real Goods Solar stock leads the Nasdaq today, up a whopping 268% to trade at $3.02 after the solar company entered an exclusive license agreement with Dow Chemical for its Powerhouse shingles system. Even with the rally today, RGSE stock has shed 55% year-to-date. In fact, going back one year, the shares were trading above $86. 

Positive Late-Stage Results Boosting Motif Bio Stock

Motif Bio stock is up 16.6% to trade at $11.79, among the best on the Nasdaq today, after reporting positive late-stage trial results from its bacterial infection drug iclaprim. Earlier today, the stock touched a record high of $13.75, which represents a 149%  jump since it opened for trade at $5.52 back in mid-November.

While MTFB stock has outperformed the S&P 500 Index (SPX) by over 27 percentage points during the past three months, a short-term breather may be looming. The security sports a 14-day Relative Strength Index (RSI) of 83, firmly in overbought territory. Still, H.C. Wainwright sees plenty more upside, as the brokerage firm this morning raised its price target to $32 from $25. 

Lowered Guidance Cripples Office Depot Stock

Office Depot stock is down 16% to trade at $3.85, among the worst on the Nasdaq and earning a spot on the short-sale restricted list. The office retailer lowered its full-year guidance, while also announcing plans to buy CompuCom Systems for $1 billion dollars. The drop today has ODP stock on pace for its lowest close since November. 

Meanwhile, Telsey Advisory Group dropped its price target to $5 from $5.50, while Deutsche Bank lowered its price target to $4.50 from $5. Short sellers are likely cheering ODP's demise. Short interest has grown by 5% during the last reporting period to 15.13 million shares, its highest level since mid-June. 

Published on Oct 5, 2017 at 10:04 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on luxury retailer Coach Inc (NYSE:COH), pharma stock Celgene Corporation (NASDAQ:CELG), and Apple supplier Western Digital Corp (NASDAQ:WDC). Here's a quick roundup of today's bearish brokerage notes on shares of COH, CELG, and WDC.

Coach Stock Lower After Downgrades

Coach received two downgrades today, one to "peer perform" from "outperform" at Wolfe Research, and another to "neutral" from "overweight" at Piper Jaffray. An analyst at Piper Jaffray cited the ongoing integration of Kate Spade as reason for its downgrade. As a result, COH stock is down 1.3% to trade at $39.21. The shares have been staring up at their 30-day moving average since an earnings-induced bear gap in mid-August.

Should Coach stock continue to struggle, more bearish brokerage notes could come down the pike. At last night's close, 16 of 24 analysts maintained a "strong buy" rating. Plus, the average 12-month price target of $49.49 is well above present trading levels.

Concerned Morgan Stanley Cuts Celgene To 'Underweight'

Celgene Corp is down 4.3% to trade at $140.31, after Morgan Stanley cut the pharma stock to "underweight" from "equal weight." An analyst at Morgan Stanley called 2018 a "make or break year" for Celgene's pipeline, citing concerns over commercial headwinds and clinical success for the company's ozanimod drug.

Although Celgene shares just racked up another positive September -- and touched a new record high of $147.17 on Monday -- put traders have been bracing for a pullback. 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 0.61 ranks in the 87th percentile of its annual range, indicating puts have been bought to open relative to calls at a faster-than-usual clip.

Deutsche Bank Downgrades Western Digital Stock

Deutsche Bank downgraded Western Digital to "hold" from "buy," while slashing its price target by $35 to $80. The brokerage firm said traders should take a "more cautious, wait-and-see approach" as the tech firm's legal dispute with Bain Capital and Toshiba over the sale of the latter's chip unit stokes uncertainty surrounding the joint venture between WDC and Toshiba.

While WDC stock has tacked on 24% year-to-date, today's 2.1% drop to $82.62 takes the shares below their 200-day moving average -- a trendline that has served as support for over a year.However, the shares could find an options-related foothold near $82.50, which is home to peak front-month put open interest of nearly 8,100 contracts.

Published on Oct 5, 2017 at 10:15 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are trading higher today, with the S&P 500 aiming for its longest winning streak in years. Among the stocks making moves this morning are beverage company Constellation Brands, Inc. (NYSE:STZ), global delivery service FedEx Corporation (NYSE:FDX), and drugmaker Inovio Pharmaceuticals Inc (NASDAQ:INO). Here's a closer look at what's moving shares of STZ, FDX, and INO.

Constellation Earnings Beat Pushes the Stock to Higher Highs

Constellation Brands stock is soaring, after the firm reported stronger-than-expected quarterly earnings and lifted its full-year profit forecast. The alcoholic beverage stock was last seen trading up 5% at $213.24, and just off a record high of $213.40.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), options traders have been favoring calls over puts during the past two weeks. STZ carries a 10-day call/put volume ratio of 2.02, ranking in the 70th percentile of its annual range.

FedEx Loses Steam Amid Reports of Amazon Delivery Service

FedEx stock is moving lower, amid reports that FAANG member Amazon (AMZN) has begun testing its own delivery service. FDX was last seen trading 2% lower at $217.75, on pace for a third straight loss since hitting a record high of $227 on Monday. Despite its recent dip, the delivery stock still boasts a 27% gain year-over-year.

FDX options traders have displayed a heavier-than-usual preference of calls over puts. Data from the ISE, CBOE, PHLX, show FDX's 10-day call/put volume ratio of 1.42 ranks in the 88th percentile of all other ratios in the past year.

INO Thrives on Upbeat Zika Vaccine Data

Inovio Pharmaceuticals shares are enjoying a boost this morning, after the company announced positive results from an early Zika virus vaccine trial. The pharma stock was last seen trading up 3% at $6.67, and is attempting to end atop its 200-day moving averages since gapping lower in July. Although INO stock was trading at annual lows as recently as Aug. 18, all of the analysts following INO already carry "strong buy" recommendations.
Published on Oct 5, 2017 at 10:47 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on Dow stock Microsoft Corporation (NASDAQ:MSFT), as well as biotechs ACADIA Pharmaceuticals Inc. (NASADQ:ACAD) and Gilead Sciences, Inc. (NASDAQ:GILD). Here's a quick roundup of today's bullish brokerage notes on shares of MSFT, ACAD, and GILD.

Canaccord Genuity Upgrades Microsoft Stock

Microsoft is up 0.6% to trade at $75.14, after Canaccord Genuity upgraded the tech stock to "buy" from "hold" and raised its price target to $86 from $76, saying traders have underestimated the company's long-term growth potential. MSFT stock -- which is one of the best stocks to own in October -- is now trading within one standard deviation its record high of $75.97, which it touched on Sept. 18. Plus, the shares are boasting a 20.9% year-to-date gain, climbing the charts this year thanks to support from their 50- and 80-day moving averages. 

Options traders, however, have been surprisingly bearish toward MSFT stock of late. The stock sports a 10-day put/call volume ratio of 0.58 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- good enough to rank in the 73rd annual percentile. In other words, puts have been bought to open relative to calls at a faster-than-usual clip.

ACADIA Pharmaceuticals Stock Hits Fresh Highs After FDA Nod

ACADIA Pharmaceuticals hit a new annual high of $41.20 out of the gate, after the U.S. Food and Drug Administration (FDA) granted the biotech breakthrough therapy status for its psychosis drug, Pimavanserin, also known as Nuplazid. Plus, Piper Jaffray and JMP Securities upped their price targets on ACAD stock to $61 from $54 and to $50 from $47, respectively, the former of which rests in uncharted territory.

The stock has since slipped 1% to trade at $38.76, but remains up 35% year-to-date. Considering ACAD's 14-day Relative Strength Index (RSI) closed last night at 71 -- in overbought territory -- a near-term retreat may have been in the cards.

Gilead Sciences Scores New 'Perform' Rating

Gilead Sciences stock is trading up 0.3% at $82.37, after Oppenheimer started coverage with a "perform" rating. Plus, Leerink reiterated its "outperform" rating, citing decreased competition among Hepatitis C drugmakers. Today's positive price action is just more of the same for Gilead stock, which was boosted by the FDA's landmark approval of CAR-T therapy in late August, and reached an annual high of $86.27 on Sept. 8.

Nevertheless, short sellers have been ramping up their exposure to GILD, with short interest up 25.6% in the two most recent reporting periods. Not only does it speak to the stock's underlying strength to rise in the face of such intense selling pressure, but the shares could get a bigger boost, should some of the weaker bearish hands start to throw in the towel.

Published on Oct 5, 2017 at 1:00 PM
Updated on Mar 19, 2021 at 7:15 AM
  • The Week Ahead
A fresh round of Federal Reserve appearances is due this week, including Fed Governor Jerome Powell -- who is set to deliver a keynote address on Thursday. This follows Wednesday's release of the closely watched Fed meeting minutes, where traders will be looking for clues on a possible December rate hike. Plus, third-quarter earnings season will unofficially begin with several notable names set to report, including high-profile financial firms JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC), as well as travel name Delta Air Lines, Inc. (NYSE:DAL).

Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

The week starts off on a quiet note, with banks and the bond market closed on Monday, Oct. 9, in observance of Columbus Day. The stock market, however, will still be open, but there are no notable economic or earnings reports due.

On Tuesday, Oct. 10, traders will hear from Minneapolis Fed President Neel Kashkari during regular trading hours, and Dallas Fed President Rob Kaplan after the close. Barracuda Networks (CUDA) will report earnings.

Wednesday, Oct. 11, will bring the release of the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) and the minutes from the September Federal Open Market Committee (FOMC) meeting. Chicago Fed President Charles Evans is also scheduled to speak. Bank of the Ozarks (OZRK), BlackRock (BLK), DAL, Fastenal (FAST), and Voxx International (VOXX) are expected to release quarterly earnings.

In addition to Powell's address, weekly jobless claims will be released on Thursday, Oct. 12, along with the holiday-delayed weekly crude inventories update, the monthly Treasury budget, and the producer price index (PPI). JPM, Citigroup (C), Domino's Pizza (DPZ), and Lindsay (LNN) will step into the earnings confessional.

The consumer price index (CPI) is due on Friday Oct. 13, along with the University of Michigan's consumer sentiment survey. Retail sales and business inventories data will also hit the Street. Evans, Kaplan, Powell, and Boston Fed President Eric Rosengren will speak. Bank of America (BAC), JB Hunt (JBHT), PNC Financial (PNC), and WFC will round out the week's earnings reports.  
Published on Oct 5, 2017 at 2:56 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are trading higher again this afternoon, with the Dow, S&P 500, and Nasdaq Composite all notching fresh record peaks. Biotech Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and pharma stock Biogen Inc (NASDAQ:BIIB) are soaring, while consumer lending name Navient Corp (NASDAQ:NAVI) is sinking amid fresh legal woes. Here's a quick look at what is moving shares of REGN, BIIB, and NAVI.

Praluent Reversal Sends Regeneron Stock Soaring

Regeneron Pharmaceuticals scored a big win today, after a U.S. appeals court threw out a sales ban on the company's cholesterol drug Praluent -- developed with Sanofi (SNY) -- a blow to Amgen, which said the treatment infringed on its patents. After being halted earlier, REGN stock is currently up 2.8% to trade at $478.75, has tacked on 28% year-to-date, and could be headed for even bigger fourth-quarter gains.

More recently, the shares took a sharp bounce off their 180-day moving average last month. Analysts might want to rethink their bearish stance, too, should REGN's rally off this former layer of resistance continue. Of the 21 brokerages covering the stock, 12 rate the shares a "hold" or worse.

Analyst: Biogen Alzheimer Pipeline a "Must-Own Catalyst"

Biogen stock is up 3.3% to trade at $325.39 -- earlier touching a two-year high of $330.98 -- after Morgan Stanley upgraded the pharma name to "overweight" from "equal weight," while also boosting its price target to $375 from $311. The brokerage firm waxed optimistic on Biogen's pipeline of drugs, saying its Alzheimer's treatments create a "a must-own catalyst." BIIB stock is up 25% year-to-date, but is running out of steam near the pesky $330 level.

In the options pits, traders have been bracing for a pullback. BIIB has a 10-day put/call volume ratio of 0.87 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 70th percentile of its annual range. In other words, puts have been bought to open over calls at a faster-than-usual clip.

Furthermore, prices are tame on near-term Biogen options. The stock's Schaeffer's Volatility Index (SVI) of 23% ranks lower than 96% of all comparable readings taken in the past year, meaning low volatility expectations are being priced in.

Navient Stock Pacing for Worst Day Ever

Navient stock is down 13.3% to trade at $12.74 earlier tagging a new annual low, and on track for its worst one-day percentage loss to date -- after Pennsylvania Attorney General Josh Shapiro filed a lawsuit today against the lending company, alleging "deceptive practices and predatory conduct" toward student loan borrowers. This is the third state to file such a lawsuit against Navient.

NAVI stock is now staring at a 22.4% year-to-date deficit, and short sellers are likely cheering. Though the stock is short-sale restricted today, short interest for NAVI increased by 14.25% during the last two reporting periods to 8.27 million shares, its highest point since mid-June.

Published on Oct 6, 2017 at 10:01 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on LED specialist Cree, Inc. (NASDAQ:CREE), healthcare firm Mallinckrodt PLC (NYSE:MNK), and travel stock Spirit Airlines Incorporated (NASDAQ:SAVE). Here's a quick roundup of today's bearish brokerage notes on shares of CREE, MNK, and SAVE.

Cree Stock Dips After Downgrade

Cree stock is down 2.4% to trade at $28.97, after a J.P. Morgan Securities downgrade to "underweight" from "neutral" -- though the brokerage firm raised its price target to $28 from $23. CREE has rallied over 28% since a bear gap took the stock to an annual low of $20.50 on Aug. 23. CREE sports a 14-day Relative Strength Index (RSI) of 80 -- firmly in overbought territory, suggesting a breather may be in the works

It seems put traders have been bracing for a pullback for some time now. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 1.38 ranks 2 percentage points from a 52-week high, indicating long puts have rarely been more popular relative to calls.

Struggling Mallinckrodt Stock Receives Price-Target Cut

Mallinckrodt stock received a price-target cut from J.P. Morgan Securities today to $53 from $55, following yesterday's downgrade to "hold" from "buy" at Canaccord Genuity. Nevertheless, MNK stock is currently up 0.8% to trade at $35.79. The shares have lost roughly half their value over the past year and hit a record low of $33.61 on Sept. 19 following a string of bearish analyst attention. The shares' 80-day moving average has curbed any attempts at a breakout since August. More downgrades could be on the way for Mallinckrodt stock, should it continue to struggle. Of the 13 brokerages covering MNK, 10 rate the shares a "buy" or "strong buy."

Spirit Airlines Stock Grounded By Deutsche Bank

Deutsche Bank downgraded Spirit Airlines to "hold" from "buy" today, sending the airline stock down 0.3% to trade at $35.10. Analysts at Deutsche cited concern over Spirit's revenue outlook due to competitiveness in its market. It's been a turbulent year for SAVE stock, which has shed over 28% year-to-date and fell to a four-year low of $30.32 on Sept. 6. The shares' 50-day moving average has contained any attempts at a breakout since early June.

Short sellers are likely cheering the equity's struggles. Short interest has grown by a whopping 38.6% during the last two reporting periods to 5.84 million shares, more than doubling April's level. However, this only accounts for 8.5% of the SAVE's total available float, indicating that there is still plenty of room for short sellers to hop aboard the stock. 

Published on Oct 6, 2017 at 10:12 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are trading lower this morning, after a surprise September jobs report. Among the stocks making moves this morning are membership warehouse Costco Wholesale Corporation (NASDAQ:COST), software company Synchronoss Technologies, Inc. (NASDAQ:SNCR), and technology powerhouse Apple Inc. (NASDAQ:AAPL). Here's a closer look at what's moving shares of COST, SNCR, and AAPL.

COST's Shrinking Margins Overshadow Q4 Profit Beat

Costco reported shrinking margins, overshadowing a fiscal fourth-quarter earnings beat. In addition, Morgan Stanley downgraded COST stock to "equal weight" from "overweight," and cut its price target to $165 from $190. Several more brokerage firms also cut their price targets on COST, amid concerns about membership renewal rates.   Shares of the discount bulk-retailer were last seen trading down 5.1% at $158.56, and are set to end the week beneath their 10-week moving average for the first time since August.

Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) show options traders were leaning toward the bulls' camp ahead of earnings, displaying a heavy preference for calls over puts during the past 10 weeks. COST's 50-day call/put volume ratio of 1.71 ranks in the 97th percentile of its annual range.

SNCR Stock Jumps Amid Revived Hopes for Siris Bid

Synchronoss Technologies stock is up 27% at $13.65, after the firm said it's resuming talks with Siris Capital, which abandoned a bid back in September. However, SNCR shares still have a ways to go before filling the bear gap from that day, prior to which the stock was trading around $16.50.

At the ISE, CBOE, PHLX, Synchronoss sports a 10-day call/put volume ratio of 18.16, ranking in the 90th percentile of all other ratios in the past 12 months. This suggests calls have been bought to open over puts at a faster-than-usual clip during the past two weeks.

Apple Investigating iPhone Battery Reports

Apple shares are down 0.4% at $154.82, amid reports of the new iPhone 8 battery swelling, causing the casing to separate. While the broader Dow and Nasdaq assail new heights, the FAANG stock has dropped 6% since its Sept. 1 record high of $164.94, yet three-quarters of analysts following the stock carrying "buy" or "strong buy" recommendations.
Published on Oct 6, 2017 at 10:30 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on restaurant stock Yum China Holdings Inc (NYSE:YUMC), airline company Delta Air Lines, Inc. (NYSE:DAL), and manufacturing concern Navistar International Corp (NYSE:NAV). Here's a quick roundup of today's bullish brokerage notes on shares of YUMC, DAL, and NAV.

Analyst Expects Record Highs For Yum China Stock

Yum China stock is trading 0.5% lower at $39.82, after the company reported better-than-expected same-store sales and revenue for the third quarter, despite posting earnings that came in below forecasts. As a result, Oppenheimer and Morgan Stanley each raised their price targets to $45.

Not all analysts, however, are convinced YUMC stock will resume its quest for record highs. Three of the seven brokerage firms following the security rate it a lukewarm "hold." The shares hit an all-time high of $42.12 on June 8. The stock had since struggled under the weight of its 40- and 50-day moving averages, but still boasts a year-to-date lead of more than 50%.

Delta Air Lines Stock Flies Higher As Hurricanes Die Down

Another stock flying higher on analyst love is Delta Air Lines stock, last seen trading 1.4% higher at $52.43, after Deutsche Bank boosted its price target on to $63 from $59 -- in uncharted territory. Up 6.4% year-to-date, DAL shares are now pacing for their fourth consecutive close above their 80-day moving average -- a trendline the stock hadn't closed above since August before Monday. 

Options traders have been upping their bullish appetite for DAL stock -- one of the best stocks to buy in October -- of late, too. This is evidenced by the security's 10-day call/put volume ratio of 3.00 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- good enough to rank in the 82nd annual percentile. In other words, options players have bought to open three calls for every put in the past two weeks.  

Navistar Stock Is Within Reach of Fresh Highs

A third stock on the rise thanks to bullish analyst attention is Navistar International stock. The truck maker is up 1.7% to trade at $44.88, after Jefferies raised its price target to $53 from $47. The brokerage firm cited the company's alliance with Volkswagen -- specifically, plans to launch an electric truck in North America by the end of 2019 -- which it believes could result in a buyout in the future.

NAV shares have been surging on the charts since mid-June, and currently boast a roughly 43% year-to-date gain. The security isn't far from the annual high of $45.47 it hit Wednesday, either. As such, bears are jumping ship. Short interest on the equity has dropped by 9% during the past two reporting periods to just 6.25 million shares. 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!

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