Earnings Season Highlights

Refresh your browser for the latest updates!
A collection of noteworthy post-earnings reactions
Published on Oct 9, 2017 at 10:18 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on TV streaming service Netflix, Inc. (NASDAQ:NFLX), as well as bank stocks Citigroup Inc (NYSE:C) and Bank of America Corp (NYSE:BAC). Here's a quick roundup of today's bullish brokerage notes on shares of NFLX, C, and BAC.

Netflix Hits Record High on Analysts' High Expectations

Last seen up 0.1% to trade at $198.21, Netflix stock earlier hit a record high of $199.40, after Loop Capital raised its price target to $228 from $212, citing its expectations for increased subscriber growth. Meanwhile, MKM Partners reiterated its "buy" rating on NFLX stock and price target of $230. The online TV streaming company is schedule to report earnings after the close one week from today.

NFLX stock has surged up the charts this year, tacking on roughly 60% in value. The shares recently shot off their 40-day moving average, and a short squeeze could propel them even higher. Short interest on the equity has grown 9.3% during the past two reporting periods to 29.6 million shares. At the equity's average daily trading volume, it would take more than a week to cover all these shorted shares.

Price-Target Hike Doesn't Lift Citigroup Stock

Citigroup stock is fractionally lower at $75.62, even after Credit Suisse raised its price target to $83 from $73. The equity, which has added 54% in value over the past 12 months, sits deep into overbought territory with a 14-day Relative Index Strength (RSI) of 79, suggesting a breather may have been in store.

The large-cap bank is expected to report earnings after the close Thursday. Options traders have upped the bullish ante on C stock ahead of the earnings event, as evidenced by the security's 10-day call/put volume ratio of 2.92 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- ranking in the 74th annual percentile. In other words, options players have bought to open more than two calls for every put during the past two weeks.

Bank of America Stock Remains Within Pennies of Fresh Highs

Credit Suisse raised its price target on Bank of America stock to $31 from $28, though the shares were last seen trading 0.4% lower at $26.10. BAC is still trading within pennies of the nine-year high of $26.30 it hit on Friday. Like its sector peer Citigroup , BAC stock has performed quite well during the past 12 months, adding over 62%. Bank of America also sits in overbought territory, however, as evidenced by its 14-day RSI of 71.3, meaning a short-term pullback may be in the cards. The company is slated to report earnings Friday morning.

Published on Oct 9, 2017 at 3:09 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are mixed to start the week, as the Dow and Nasdaq Composite set fresh intraday highs albeit with muted overall gains. Healthcare stocks Express Scripts Holding Company (NASDAQ:ESRX), K2M Group Holdings Inc (NASDAQ:KTWO), and Davita Inc (NYSE:DVA) are all sinking after receiving bearish analyst attention. Here's a quick look at what is moving shares of ESRX, KTWO, and DVA.

ESRX Stock Downgraded on Amazon Fears

Raymond James downgraded Express Scripts stock to "underperform" from "market perform," citing the company's vulnerability to "escalating competitive pressures." More specifically, these competitive pressures take the form of Amazon.com, who is reportedly considering entering the prescription drug market. At last check, ESRX stock was down 5% to trade at $59.25. Earlier today, the equity fell to $58.84, its lowest level since late-May. 

Despite its struggles, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has accumulated a 10-day call/put volume ratio of 2.00, which ranks 5 percentage points from a 52-week high. This suggests options traders have been buying calls over puts at a much faster-than-usual clip over the past 10 days.

Ugly Revenue Guidance Sinking KTWO Stock

K2M Group Holdings stock is down 19% to trade at $17.73, among the worst on the Nasdaq and currently short-sale restricted, after the company reduced its current-quarter and full-year revenue forecasts. The slashed guidance resulted in at least three price-target cuts, including a drop to $22 from $26 at RBC. KTWO has now lost 32% since hitting its multi-year high of $25.99 it hit on July 25.

Nevertheless, some analysts remain upbeat. All eight of the brokerages covering KTWO rate the shares a "strong buy" or "buy." Furthermore, KTWO's average 12-month price-target stands up at $25.50, which suggests more cuts could be on the way.

Davita Touches Nearly Four-Year Low After Downgrade

Davita was downgraded by J.P. Morgan Securities today to "underweight" from "neutral", with analysts citing concerns over earnings power due to legal disputes surrounding the American Kidney Fund (AKF). The analysts also lowered their price target to $51 from $66. DVA stock is currently down 8.7% to trade at $54.61, among the worst on the New York Stock Exchange (NYSE). Earlier today, the equity touched an almost four-year low of $54.04. 

Short sellers are likely cheering the stock's fall. Short interest has increased by 27% during the last two reporting periods, and is currently at its highest point since December 2016. However, this only accounts for a meager 5% of the security's total available float, indicating that there is still plenty of room for short sellers to hop aboard.

Published on Oct 10, 2017 at 10:09 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on cybersecurity name Qualys Inc (NASDAQ:QLYS), pharmaceutical stock Eli Lilly and Co (NYSE:LLY), and Apple supplier Jabil Inc (NYSE:JBL). Here's a quick roundup of today's bearish brokerage notes on shares of QLYS, LLY, and JBL.

Morgan Stanley Hits Qualys Stock With Downgrade

Qualys was downgraded at Morgan Stanley to "equal weight" from "overweight," with the brokerage firm explaining sector peers Palo Alto Networks (PANW) and Symantec (SYMC) offer a better risk/reward. In reaction, QLYS stock is down 4.4% to trade at $50.85, retreating from yesterday's two-year high of $54.15 and falling below their recently supportive 20-day moving average for the first time since an early August bull gap.

Longer term, the equity has tacked on roughly 61% year-to-date. Nevertheless, analysts are skeptical toward QLYS. At last night's close, eight of the 13 brokerages covering the equity rated it a tepid "hold."

First a Downgrade, Then a Failed Lung Cancer Drug Study for LLY

It's been a rough few days for Eli Lilly, which received a downgrade last night at Credit Suisse to "neutral" from "outperform." Now today, the pharmaceutical name reported that its drug Verzenio failed its late-stage study in patients with non-small cell lung cancer.

As a result, LLY stock is currently down 1.3% to trade at $85.95, after touching a two-year high of $89.01 last Thursday. However, LLY stock closed last night in overbought territory, as evidenced by its 14-day Relative Strength Index (RSI) of 70, meaning a short-term pullback may have been in the cards.

Jabil Stock Downgraded at Goldman Sachs

Goldman Sachs downgraded Jabil stock today to "sell" from "neutral," while also reducing its price target $2 to $26, citing "overly optimistic Street expectations." The brokerage firm also said there could be "downside risk to [earnings] estimates if iPhone X orders are not stronger."

Against this backdrop, Jabil stock is down 3% to trade at $28.61, but is finding a foothold atop its 200-day moving average -- a trendline contained a late-September retreat. Plus, JBL remains up nearly 21% year-to-date.
 
In spite of this longer-term outperformance, options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have had a healthier-than-usual appetite for puts over calls lately. JBL stock sports a 50-day put/call volume ratio of 2.05 -- 3 percentage points away from a 52-week high. 

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

Analysts are weighing in on cybersecurity stock Palo Alto Networks Inc (NYSE:PANW), coal concern Peabody Energy Corporation (NYSE:BTU), and Dow component Caterpillar Inc. (NYSE:CAT). Here's a quick roundup of today's bullish brokerage notes on shares of PANW, BTU, and CAT.

Palo Alto Networks Stock Gaps Higher On Upgrade

Palo Alto Networks stock is up 3.2% to trade at $151.16, after Morgan Stanley upgraded the cybersecurity concern to "overweight" from "equal weight" and raised its price target to $185 from $150. Though boasting a 20.7% year-to-date lead, PAWN shares have had a bit of a rocky run in 2017. After peaking near $157.50 in February, the equity plummeted to a two-year low of $107.31 on April 5, only to go on to enjoy earnings-fueled bull gaps in June and September. Of the 33 analysts following the security, more than three-quarters rate it a "buy" or better, with not a single "sell" in sight.

Peabody Energy Stock Pops

Another stock inching higher this morning is Peabody Energy, last seen trading 1.7% higher at $29.84, after Macquarie raised its price target to $32 from $30. The equity seems to have found its sea legs since dropping to an annual low of $22.58 on June 23, recently enjoying support from its 50-day moving average. Analysts are certainly remaining upbeat, with four of six rating the equity a "strong buy."

Upgrade Sends Caterpillar Stock to Record High

Caterpillar stock hit a record high of $127.95 earlier, after J.P. Morgan Securities raised its price target on the blue chip to $125 from $120, citing a strong performance from the machinery sector as a whole. CAT shares were last seen trading 0.7% higher at $127.79. The security has been tearing up the charts, tacking on 45% in value over the past 12 months. While the shares' 10- and 20-day moving averages have provided support in recent weeks, their 50-day moving average neatly contained its June and July pullbacks.

Options traders on the International Securities Exchange (ISE), Chicago Board Options exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have had quite the bullish appetite of late. CAT sports a 10-day call/put volume ratio of 1.18, which ranks in the 92nd annual percentile. In other words, options players have favored long calls over puts at an unusual rate.

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

The major U.S. equity benchmarks rallied to new record highs out of the gate this morning, following suit with strength in oil prices. Among the stocks making moves this morning are tech company Nvidia Corporation (NASDAQ:NVDA), biopharmaceutical concern Pfizer Inc. (NYSE:PFE), and biomaterial products developer MiMedx Group, Inc. (NASDAQ:MDXG). Here's a closer look at what's moving shares of NVDA, PFE, and MDXG.

NVDA Announces Driverless Vehicle Chips

Shares of Nvidia stock shot higher after the company unveiled chips for fully autonomous vehicles. NVDA was last seen trading up 1.9% at $188.88, after earlier setting a new record high of $192.95. The semiconductor stock has managed to gain 186% year-over-year, and sports a Schaeffer's Volatility Scorecard (SVS) rating of 97 -- suggesting NVDA has consistently exceeded the options market's volatility expectations over the past year. 

Options Traders Are Call-Heavy on PFE

Despite  announcing a strategic review for its consumer healthcare business, Dow stock Pfizer's shares have quickly erased early gains. The stock is fractionally lower at $36.13, after touching a new annual high of $36.51 in early trading.

Meanwhile, PFE options traders have grown increasingly bullish. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Pfizer stock sports a 10-day call/put volume ratio of 6.13, which ranks in the 97th percentile of its annual range.

MDXG Preliminary 3Q Revenue Tops Estimates

MiMedx Group announced preliminary third-quarter revenue of $84.6 million, easily topping the consensus estimate of $79.3 million. However, MDXG has erased its pre-market gains to trade down 1.3% at $11.57, backing away from resistance at its 20-day moving average. Front-month options players are pricing in relatively high volatility expectations for MDXG; the stock's Schaeffer's Volatility Index (SVI) of 113% ranks higher than 100% of other such readings from the past year.
Published on Oct 10, 2017 at 1:09 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are higher today once again, as the Dow, S&P 500, and Nasdaq Composite all set fresh intraday highs this morning. Biotech stocks MannKind Corporation (NASDAQ:MNKD) and AnaptysBio Inc (NASDAQ:ANAB), as well as airline stock American Airlines Group Inc (NASDAQ:AAL), are soaring. Here's a quick look at what is moving shares of MNKD, ANAB, and AAL.

Analyst Initiates Bullish Coverage On MannKind Stock

MannKind stock is up 26% to trade at $6.76, among the best on the Nasdaq today and pacing for a seventh straight win, after H.C. Wainwright initiated coverage of the biotech with a "buy" rating and $7 price target. The Food and Drug Administration (FDA) earlier this week gave the company permission to include new data on its label for inhaled insulin product Alfrezza, a decision Wainwright's analysts believe will make the treatment a market leader. The stock earlier touched an annual high of $6.96, and has tacked on over 109% year-to-date.

A short squeeze could push MKND stock even higher. Short interest has increased by 10% during the last reporting period to 23.22 million shares, the highest number since mid-June. This accounts for a whopping 32% of the stock's total available float, and it could take nearly six days for shorts to fully cover their positions, at MNKD's average daily trading volume. This represents a major source of potential buying power that could enter the market.

Upbeat Drug Data Takes ANAB Stock To New Heights

AnaptysBio stock is one of the top Nasdaq performers today, up an astounding 88% to trade at $65.86, after reporting positive topline data on its eczema drug. As a result, Baird, Credit Suisse, and Wedbush have raised their respective price targets to $69, $85, and $75. Safe to say investors are pleased with the stock's performance, since it began trading back on Jan. 26 at $16. Analysts are resoundingly upbeat, too. All five of the brokerages covering ANAB rate the shares a "strong buy" or "buy." Furthermore, the average 12-month price-target stands up at $44, which suggests more price-target hikes could be on the way.

American Airlines Stock Higher After Upbeat Outlook

American Airlines today raised its third-quarter growth outlook for total revenue per available seat miles (TRASM). As a result, Cowen and Company raised its price target one dollar to $56, while UBS said a weaker dollar could help all U.S. airlines. At last check, the stock is up 4.2% to trade at $52.71, and has tacked on almost 36% year-over-year. The airline name struggled the past two months as hurricanes wrecked America's Gulf Coast, but AAL shares found support along their 320-day moving average. A similar bounce from this trendline back in mid-March resulted in a multi-month rally that culminated with their July 13 annual high of $54.48.

The airliner's upbeat outlook may cause options bears to head for the hills. The security sports a Schaeffer's put/call open interest ratio (SOIR) of 0.69, which ranks in the 76th percentile of its annual range. This means short-term options traders have favored puts more than normal of late.

Published on Oct 11, 2017 at 9:57 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on digital payment platform PayPal Holdings Inc (NASDAQ:PYPL), social media giant Facebook Inc (NASDAQ:FB), and mobile camera application Snap Inc (NYSE:SNAP). Here's a quick roundup of today's bullish brokerage notes on shares of PYPL, FB, and SNAP.

Analyst Expects More Record Highs For PayPal Stock

PayPal stock is up 1.8% to trade at $67.21, earlier hitting a record high of $67.43, after Morgan Stanley upgraded the payments processor stock to "overweight" from "equal weight" and raised its price target to $76 from $62 -- in uncharted territory -- citing optimism for the company's revenue and earnings growth. Barclays also issued a price-target hike for PYPL, to $75 from $69.

PayPal stock has been surging up the charts since an earnings-induced bull gap in late April. So far, the security has tacked on 67.3% this year. Options traders have been surprisingly bearish toward PYPL, however, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.25 -- ranking just 1 percentage point away from an annual high. This ratio suggests short-term options players are favoring puts over calls by an usual amount. An unwinding of these seemingly bearish bets could translate into tailwinds for the shares.   

Facebook Stock Scores Big Price-Target Hike

Another stock analysts think will hit record highs in the near term is Facebook, last seen up 0.2% at $172.05, after Credit Suisse upped its price target to $235 from $190 -- an upside of 37% to current levels. The brokerage firm believes an increase in advertisement spending will boost Facebook's margins.

Like PYPL, the social media stock has had no problem climbing the charts this year, adding over 49% in value. The shares have relied on their trusty 80-day moving average to contain pullbacks in June, July and September. FB hit a record high of $175.49 on July 27, and it's safe to say the majority of analysts are convinced on its potential to push higher. Of the 24 analysts following the equity, all but one rate it a "buy" or better, with not a single "sell" in sight.

Analyst Expects SNAP To Surge On Technology Updates

Credit Suisse also had something to say about Snap stock this morning, boosting its price target to $20 from $17 -- territory the stock hasn't visited since June. The brokerage firm said the Snapchat parent is taking appropriate steps to strengthen its technology offering to allow advertisers to market to a younger demographic. In a similar vein, a survey conducted by a Piper Jaffray analyst shows that teens are preferring Snapchat over Facebook. SNAP shares were last seen trading at $14.64, up 2.2%.

Snapchat stock has been on the decline since its March initial public offering (IPO) date, struggling under the pressure of its 80-day moving average. Although the security has climbed 27% from its all-time low of $11.28 hit on Aug. 14 to current levels, not all analysts are convinced. More than 70% of the 28 analysts following the equity rate it a "hold" or worse.

Published on Oct 11, 2017 at 10:18 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on oil-and-gas company Schlumberger Limited (NYSE:SLB), Dow stock General Electric Company (NYSE:GE), and biotech bluebird bio Inc (NASDAQ:BLUE). Here's a quick roundup of today's bearish brokerage notes on shares of SLB, GE, and BLUE.

BMO Downgrades Schlumberger Stock

BMO downgraded Schlumberger stock to "market perform" from "outperform," while reducing its price target by $2 to $72. SLB stock is currently down 2.1% to trade at $66.91, and is back below its 120-day moving average -- a trendline that recently served as support for the security following a rally off its late-August lows near $62.50.

Longer term, the equity has shed 20.3% year-to-date, but options traders have been buying to open calls over puts at a faster-than-usual clip in recent months. SLB stock has racked up a 50-day call/put volume ratio of 1.97 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks 5 percentage points from a 52-week high.

General Electric Stock Gets PT Cut Amid Takeover Rumors

J.P. Morgan Securities issued a price-target cut on General Electric to $20 from $22, sending the stock is down 0.9% to trade at $23.15 -- and fresh off a new two-year low of $23.02. The industrial conglomerate has shed 26.7% year-to-date -- the worst of all Dow stocks -- and with an average 12-month price target of $27.50, a 19% premium to the stock's current perch, more bearish brokerage notes could be on the way.

Short sellers have been piling on GE stock, too. Short interest increased by almost 26% during the last two reporting periods to 125.75 million shares, its highest point since mid-December. Continued selling pressure from shorts could create more headwinds for the shares.

Separately, a Wall Street Journal report suggested GE's Baker Hughes was recently in takeover talks with energy services company Subsea 7 SA. And while the talks have since ended, speculation is swirling that they could be revived.

Bluebird Bio Stock Downgraded At Jefferies

bluebird bio stock is down 1.7% to trade at $129.25, after Jefferies downgraded the biotech name to "hold" from "buy." And while the brokerage firm raised its price target to $126 from $88, this is still a discount to current trading levels.

This is just the latest in a recent string of bearish analyst notes, even as BLUE stock has added 113% year-to-date. Plus, the stock touched a two-year high of $143.50 on Sept. 29, and its pullback from here has been contained by the 30-day moving average.

Short sellers, meanwhile, have been jumping ship amid the stock's longer-term uptrend. Short interest plunged 43.8% in the last reporting period to 4.36 million shares. However, this still represents 10.8% of the stock's available float, and would take almost six days to cover, at bluebird's average daily trading volume.

Published on Oct 11, 2017 at 10:19 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are little changed this morning, with the lack of movement stemming from anticipation ahead of today's Fed meeting minutes release. Among the stocks making moves this morning are airliner Delta Air Lines, Inc. (NYSE:DAL), security and data solutions company Barracuda Networks Inc (NYSE:CUDA), and refrigerant services concern Hudson Technologies, Inc. (NASDAQ:HDSN). Here's a closer look at what's moving shares of DAL, CUDA, and HDSN.

Delta Earnings Surprise to the Upside

Shares of Delta Air Lines are higher after the company reported better-than-expected third-quarter earnings before today's opening bell. The airline stock is trading up 0.8% at $53.12, and is currently sporting a 35.3% year-over-year gain. DAL hit a record closing high of $55.48 back on July 12, and is now on track to retest that peak soon, following a 20% pullback through early September.

Despite the long-term positive price action, options players are favoring bearish bets. DAL's Schaeffer's put/call open interest ratio (SOIR) of 0.86 ranks in the 100th percentile of its annual range, suggesting the put skew among near-term options traders is at peak levels.  

CUDA Gaps Lower as Earnings Take a Dive

Barracuda Networks reported adjusted second-quarter earnings that fell 36% year-over-year -- right in line with analysts' expectations, although the stock has plummeted 10.3% to $23.10 in response to the news. Today's bear gap has the stock on track to close below its recently supportive 40-day moving average for the first time since Aug. 29.

Ahead of earnings, CUDA options traders had grown increasingly bearish on the stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CUDA's 50-day put/call volume ratio of 0.63 ranks in the 90th percentile of its annual range, suggesting that puts have been bought-to-open at a faster-than-usual clip relative to calls during the past 10 weeks.

Hudson Hammered on Weak 3Q Outlook

HDSN was hit with two price-target cuts -- to $9 from $10 at Craig-Hallum, and to $7.50 from $10 at B. Riley -- after providing remarkably dismal preliminary third-quarter results following Tuesday's close. The refrigerant services stock is trading 12.3% lower at $6.64, and is hovering near six-month lows. 

Short interest on HDSN is high, accounting for more than 12% of the stock's available float -- or 9.5 times the equity's average daily trading volume. While today's bear gap has short selling on Hudson Tech stock temporarily restricted, it's safe to say the shorts remain in control on this name.
Published on Oct 11, 2017 at 12:48 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are modestly higher today, as traders cautiously await the Fed meeting minutes. However, not all the action is sluggish, with IT services firm Helios and Matheson Analytics Inc (NASDAQ:HMNY), grocery stock Kroger Co (NYSE:KR), and biotech Aerie Pharmaceuticals Inc (NASDAQ:AERI) making big moves. Here's a quick look at what is moving shares of HMNY, KR, and AERI.

Citron Swipe Can't Stop HMNY Stock

Helios and Matheson stock was halted earlier, but has since resumed trading -- up a whopping 28% to at $35.93, and fresh off a 12-year high of $38.86. Today's surge comes even after Citron Research tweeted a warning about the stock's meteoric rise in the wake of the company taking a majority stake in MoviePass -- saying "Retail investors are warned." In fact, HMNY stock has gained 1,127% since its Aug. 15 close at $2.95, and is currently on track for a fifth straight win.

Some of this upside is likely due to a short-squeeze situation, as well. Short interest increased by 73% during the last reporting period, and now accounts for 62% of HMNY's total available float. 

Kroger Stock Rising After Convenience Store Sale Chatter

Kroger this morning affirmed its 2017 profit and sales guidance and said it is exploring the sale of its convenience store business. After being halted earlier, KR stock was last seen up 4.2% to trade at $21.40. Nevertheless, the shares are running out of steam near their 50-day moving average -- a trendline that's contained the stock since a mid-June bear gap following news of Amazon's Whole Foods takeover. Longer term, KR stock has shed 38% year-to-date and fell to a three-year low of $19.70 on Oct. 2.

Not surprisingly, put buying has been en vogue recently. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KR's 50-day put/call volume ratio of 1.39 ranks 2 percentage points from a 52-week high.

Upbeat FDA Review Has Aerie Pharma Stock Red-Hot

The Food and Drug Administration (FDA) completed its preliminary review of Aerie Pharmaceuticals' eye pressure drug Rhopressa, concluding it effective. This comes two days ahead of committee meeting in which experts will make a recommendation on approval to the FDA.

As a result, the equity is up 12.6% to trade at $62.35. Earlier in the session, the stock touched a record high of $65.90. AERI stock has added 64.7% year-to-date, and the shares' 180-day moving average has contained any pullbacks in 2017.

A continued short squeeze could push AERI stock even higher. Although short interest decreased by nearly 15% in the last reporting period, 4.5 million shares are still sold short. This represents roughly 18% of AERI's total available float, and it could take more than a week for shorts to fully cover their bearish positions, at the biotech stock's average daily trading volume.

Published on Oct 11, 2017 at 3:32 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update
Google parent Alphabet Inc (NASDAQ:GOOGL), e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN), and TV streaming service Netflix, Inc. (NASDAQ:NFLX) all received bullish analyst attention today. Below, we will check in with these FAANG stocks and see how they are faring ahead of earnings season, with Netflix set to report early next week.

Alphabet Stock Breaks Back Above $1,000 Level

Earlier today, Credit Suisse raised its price target on Alphabet stock to $1,350 from $1,100 -- in uncharted territory, and representing upside of about 35% to the equity's current perch. Alphabet stock is currently up 1.6% to trade at $1,003.66, marking the first time GOOGL stock has crossed the $1,000 level since July 24. GOOGL stock is now a chip-shot from the record high of 1,008.61 it hit on June 6.

Since the Oct. 4 unveiling of the new Pixel smartphone and other Google gadgets, GOOGL has added about 7%. A short squeeze could be fueling Alphabet stock's recent run. Short interest decreased by nearly 8% during the last two reporting periods, to 2.51 million shares, its lowest level since September 2016.

Credit Suisse Spreads the Analyst Love to Amazon Stock

Amazon also received a price-target hike from Credit Suisse, also to $1,350 from $1,100. The new target represents a 36% increase from AMZN's current perch of $990.09, and nearly double the stock's Nov. 14 low of $710.10. The e-commerce equity has added roughly 32% year-to-date, but the shares recently backed down from the $1,000 level -- which coincides with a key market cap -- in mid-September, and haven't closed in four-digit territory since late July.

With Amazon shares among the best to own in the fourth quarter -- and data from Schaeffer's Senior Quantitative Analyst Rocky White showing triple-digit stocks tend to outperform their lower-priced peers -- it might be prime time to buy calls on the FAANG stock, if past is prologue. Most near-term options traders are already in the bulls' corner, as AMZN has a Schaeffer's put/call open interest ratio (SOIR) of 0.88, its lowest point in 52 weeks. This means short-term options traders have never more call-skewed in the past year. 

One Analyst Sees Record Highs Ahead for Netflix Stock

Not to be outdone, Netflix received a price-target hike from Cowen and Company this morning, to $215 from $197 -- in uncharted territory. While NFLX stock is currently down 0.2% to trade at $194.64, it has added 93% year-over-year and is fresh off a record high of $199.40 last Friday. Netflix will report earnings next Monday.

Despite the stock's quest for new highs, there's plenty of fuel left in the tank, should the lingering shorts hit the exits. Short interest represents nearly a week's worth of pent-up buying demand, at NFLX's average pace of trading.
Published on Oct 12, 2017 at 9:30 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in on retail stock J.Jill Inc (NYSE:JILL), network equipment specialist Juniper Networks, Inc. (NYSE:JNPR), and prepaid card name Blackhawk Network Holdings Inc (NASDAQ:HAWK). Here's a quick roundup of today's bearish brokerage notes on shares of JILL, JNPR, and HAWK.

J. Jill Stock Spirals After Slashed Guidance, Downgrade

JILL stock is bracing for a 45% drop out of the gate -- set to open at a new record low -- after the women's retailer slashed its third-quarter profit and same-store sales forecast, citing lower-than-expected sales. In reaction, SunTrust Robinson cut its rating on the retailer to "hold" from "buy," while Deutsche Bank and Jefferies cut their respective price targets to $11 and $13.

Since its March 9 open at $12.75 -- below the retailer's $13 per share initial public offering -- J. Jill stock has declined 22.1%, settling Wednesday at $9.93. More bearish brokerage notes are likely on the way, considering seven of eight analysts maintained a "buy" or better rating on the stock at last night's close.

Juniper Networks Downgraded After Profit, Revenue Warning

JNPR shares are down 4.5% in pre-market trading, after the company's lower-than-expected preliminary third-quarter earnings report was met with a downgrade to "neutral" from "buy" at Nomura Instinet and price-target cuts at BMO (to $31) and Raymond James (to $34).

After closing last night at $26.86, today's drop could have the shares trading near levels not seen since January, and options traders are likely cheering. Juniper Network stock's 10-day put/call volume ratio of 13.35 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 99% of all comparable readings, pointing to an unusual preference for bearish bets over bullish of late

Revenue Miss, Downgrade Sink HAWK Stock

Blackhawk Network reported an adjusted third-quarter profit of $0.18 per share that came in above the consensus estimate, but the company's $419.3 million in revenue missed the mark, and it lowered its full year operating revenue forecast. Against this backdrop, HAWK is down nearly 13% ahead of the bell, with a downgrade to "market perform" from "outperform" at Raymond James and price-target cuts from SunTrust Robinson (to $43) and Craig-Hallum (to $50) pouring salt on the proverbial wound.

Heading into today's trading, the stock was up 17.3% year-to-date at $44.20, with its 120-day moving average providing steady support since last October. Amid this positive price action, short sellers have been jumping ship, too. Short interest on HAWK fell 13% in the most recent reporting period to 3.36 million shares. However, this still accounts for a relatively healthy 6.4% of the stock's available float.

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

1640638248

 


MORE | MARKETstories


TKO Group Stock Ripe for Short Squeeze After UFC Deal
Paramount Skydance will buy U.S. rights to UFC for $7.7 billion for seven years
Monday.com Stock Plummets Despite Strong Q2 Report
The company also raised its full-year guidance