Stocks On the Move: Harley-Davidson Inc, GoPro Inc, and ARM Holdings plc (ADR)

HOG, GPRO, and ARMH are moving sharply in Tuesday's trading

by Andrea Kramer

Published on Oct 21, 2014 at 11:57 AM
Updated on Apr 20, 2015 at 5:32 PM

U.S. stocks are higher in early action, as Wall Street cheers encouraging data out of China, an uptick in U.S. home sales, and a well-received batch of big-cap earnings reports. Among the names making significant moves are motorcycle maker Harley-Davidson Inc (NYSE:HOG), mobile camera concern GoPro Inc (NASDAQ:GPRO), and tech issue ARM Holdings plc (ADR) (NASDAQ:ARMH). Here's a quick look at how HOG, GPRO, and ARMH are faring on the charts today.

  • HOG is 7.3% higher at $62.62, thanks to a stronger-than-expected earnings report. After wallowing near annual lows yesterday, the stock is on pace to finish north of its 60-day moving average for the first time since late June. Today's earnings win was likely a disappointment to recent Harley-Davidson Inc option buyers, as the stock's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 2.45 -- in the 82nd percentile of its annual range. In other words, in the two weeks leading up to HOG's report, speculators were buying to open puts over calls at a much faster-than-usual clip.

  • GPRO is 4.1% higher on no apparent news, though traders may be digesting leaked info regarding the company's newest camera. The stock has nearly tripled in value since going public in late June, and was last seen flirting with $79.04 and its formerly supportive 10-day moving average, which hasn't been conquered on a daily closing basis since Oct. 8, when GPRO was lingering near $90. Should the equity resume its uptrend, bearish analysts and short sellers could hit the bricks. Just two out of nine analysts offer up "strong buy" opinions, and short interest accounts for almost 41% of GoPro Inc's total available float.

  • ARMH is bucking the broad-market trend higher, down 5.5% at $39.26. In fact, the equity touched a new annual low of $37.75 earlier, as Wall Street pans the company's third-quarter earnings report. An analyst at Bernstein said it's "more and more likely" that last year was an exceptional one for ARM Holdings plc (ADR) and smartphone growth, and reiterated his "underweight" rating. Likewise, Canaccord Genuity, Benchmark, and S&P Capital IQ all downwardly revised their price targets, with the latter echoing a "sell" recommendation. There could be more negative notes on the horizon, too, as seven out of 11 analysts offer up "buy" or better endorsements, and the average 12-month price target of $52.31 represents expected upside of 33% to ARMH's current price.

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