Stocks On the Move: Gigamon Inc, Gilead Sciences, Inc., and GoPro Inc

GIMO, GILD, and GPRO are moving sharply in Friday's trading

by Andrea Kramer

Published on Oct 24, 2014 at 12:55 PM
Updated on Apr 20, 2015 at 5:32 PM

U.S. stocks are solidly higher this afternoon, as earnings from Microsoft Corporation (NASDAQ:MSFT) and Procter & Gamble Co (NYSE:PG) overshadow escalating concerns about Ebola. Among the equities making notable moves are IT concern Gigamon Inc (NYSE:GIMO), biopharmaceutical issue Gilead Sciences, Inc. (NASDAQ:GILD), and mobile camera maker GoPro Inc (NASDAQ:GPRO). Here's a quick look at how GIMO, GILD, and GPRO are faring on the charts today.

  • GIMO is the biggest advancer on the Big Board thus far, up 18.5% at $13.73. The company last night reported stronger-than-expected quarterly earnings, triggering bullish brokerage notes from D.A. Davidson and Goldman Sachs. The former upped its price target on GIMO to $14, while the latter hiked its price target to $14.50 from $13; both firms reiterated "neutral" opinions. The post-earnings rally likely took a few bears by surprise. Short interest accounts for 14.7% of Gigamon Inc's total available float, representing nearly nine sessions' worth of pent-up buying demand, at the equity's average pace of trading. Likewise, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.38 sits just 2 percentage points from an annual high, suggesting short-term options players have rarely been more put-heavy during the past year.

  • GILD is up 3.2% at $110.59, and earlier notched a record high of $111.47. Ahead of Gilead Sciences, Inc.'s turn in the earnings confessional next Tuesday night, an analyst at UBS waxed optimistic on the firm's just-released hepatitis C treatment, which is "off to the races," according to Barron's. Furthermore, the brokerage firm underscored a "buy" endorsement and a price target of $125 -- representing even higher highs for GILD. Option buyers, meanwhile, are less bullish toward GILD, despite the stock's ascent. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 0.49 registers in the 77th percentile of its annual range. In other words, traders have bought to open GILD puts over calls at a faster-than-usual pace of late.

  • GPRO is bucking the broad-market trend higher, down 9.4% due to a negative analyst note. Specifically, Oppenheimer last night started coverage of the stock with an "underperform" rating and a price target of $45 -- representing a significant discount to the stock's current perch of $71.59, as well as the equity's consensus 12-month price target of $82.88. The analysts attributed the bearish view to escalating competition with the smartphone, and said they "expect several new entrants to the capture market that will result in lost wallet share or lower gross margins, and ultimately missed expectations." GoPro Inc has more than doubled since its debut in June, but has dropped 27.3% since peaking at $98.47 earlier this month.

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