Stocks On the Move: Freeport-McMoRan Inc, Coach Inc, and VASCO Data Security International, Inc.

FCX, COH, and VDSI are moving sharply in Tuesday's trading

by Karee Venema

Published on Oct 28, 2014 at 1:39 PM
Updated on Apr 20, 2015 at 5:32 PM

Markets are cautiously higher this afternoon, following a strong reading on consumer confidence. Among equities making notable moves are mining magnate Freeport-McMoRan Inc (NYSE:FCX), accessories designer Coach Inc (NYSE:COH), and IT issue VASCO Data Security International, Inc. (NASDAQ:VDSI). Here's a quick look at how FCX, COH, and VDSI are performing on the charts so far.

  • FCX tagged a fresh annual low of $28.64 earlier, after a downwardly revised production outlook due to labor strife in Indonesia overshadowed a better-than-expected third-quarter earnings report. At last check, the equity was down 4.3% at $28.99 -- extending its year-to-date deficit to 23% -- most likely to the delight of option traders. The news has yet to prompt any analysts to re-evaluate their upbeat ratings, but with Freeport-McMoRan Inc boasting 12 "buy" or better ratings, versus three "holds" and not a single "sell," a round of downgrades could be on the horizon.

  • COH fell to a four-year low of $33.25 this morning, following a number of poorly received fundamental developments, including a dreary revenue outlook. The headlines were met with price-target cuts at Jefferies (by $2 to $33) and Canaccord Genuity (by $3 to $34), with both brokerage firms underscoring their tepid "hold" ratings. Elsewhere, Sterne Agee and Credit Suisse waxed pessimistic over a slowdown of growth in Asia, with the latter explaining, "Sustained weakness (in Japan) may signal that brand challenges in the U.S. are spilling over into international markets, adding risk to the mid-term outlook." While pre-earnings traders were hopeful on Monday, today's option speculators appear to be initiating new long positions at the stock's weekly 10/31 34-strike put, as they bet on more downside through week's end. At last glance, shares of Coach Inc were off 6.6% to trade at $33.77.

  • VDSI is one of the top movers on the Nasdaq today -- second only to Receptos Inc (NASDAQ:RCPT) -- after its third-quarter earnings were given a boost by a recent string of hacking attempts. On the charts, the equity rallied to a new six-year peak of $24.16 earlier, but was most recently seen up 30.2% at $23.81. Today's positive price action only highlights the security's longer-term momentum, with shares of VASCO Data Security International, Inc. more than tripling in value on a year-to-date basis. On the options front, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 5.8 puts for every call over the past 10 sessions. Given VDSI's strong technical showing, it could be a portion of this activity was at the hands of shareholders protecting their portfolios against any post-earnings downside.

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