Stocks On the Move: CBS Corporation, Baker Hughes Incorporated, and Akamai Technologies, Inc.

CBS, BHI, and AKAM are moving sharply in Thursday's trading

by Andrea Kramer

Published on Oct 16, 2014 at 12:43 PM
Updated on Apr 20, 2015 at 5:32 PM

After an initial plunge, U.S. stocks have pared their losses against a backdrop of mixed economic data and mounting Ebola concerns. Among the names making significant moves are media giant CBS Corporation (NYSE:CBS), commodity concern Baker Hughes Incorporated (NYSE:BHI), and cloud infrastructure issue Akamai Technologies, Inc. (NASDAQ:AKAM). Here's a quick look at how CBS, BHI, and AKAM are faring on the charts today.

  • CBS is bucking the broad-market trend lower, up 1.4% at $51.45, after the firm announced plans to toss its hat into the streaming video ring. The decision is just salt in the wound for beleaguered Netflix, Inc. (NASDAQ:NFLX), and comes just one day after a similar announcement from Time Warner Inc (NYSE:TWX). From a longer-term perspective, CBS Corporation shares are still down 19.1% in 2014, but the stock's 14-day Relative Strength Index (RSI) sits at 29 -- in oversold territory, suggesting a short-term rebound may have been in the cards. Amid the security's struggles of late, short interest skyrocketed nearly 68% during the most recent reporting period, though analysts have remained optimistic. Currently, CBS boasts 16 "buy" or better ratings, compared to three lukewarm "holds" and not a single "sell."

  • BHI is down 6.4% at $50.19, and earlier tagged a new annual low of $47.51, as traders pan a weaker-than-expected quarterly earnings report. As such, the stock landed on the short-sale restricted (SSR) list, and intraday options volume is running at three times the normal pace. Digging deeper, it appears bears are cashing in their chips by selling to close the now in-the-money January 2016 55-strike put, which is the most active option thus far. Meanwhile, a flood of downgrades could exacerbate selling pressure on Baker Hughes Incorporated, with 15 out of 23 analysts maintaining "buy" or better recommendations.

  • Speaking of downgrades, AKAM is 3.4% lower at $52.77, after Wells Fargo revised its opinion to "market perform" from "outperform." The brokerage firm cited "concerns on the pace of revenue growth over the next 6-12 months," as well as a slowdown in video and audio streaming action. Bearish analyst attention is relatively rare for Akamai Technologies, Inc., which boasts 16 "strong buys" and just three "holds," with not a "sell" to be found. Plus, the equity's average 12-month price target of $68.33 sits in territory not charted in 14 years. Should the company report lackluster earnings after the close on Wednesday, Oct. 29, additional downgrades and/or price-target cuts could weigh on AKAM.

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