Stocks On the Move: Hertz Global Holdings, Inc., Petroleo Brasileiro Petrobras SA (ADR), and Bitauto Hldg Ltd (ADR)

HTZ, PBR, and BITA are moving sharply in Friday's trading

by Karee Venema

Published on Nov 14, 2014 at 1:51 PM
Updated on Apr 20, 2015 at 5:32 PM

Markets are sticking close to the flatline this afternoon, as traders digest the latest round of economic data. Meanwhile, among equities making notable moves are car rental concern Hertz Global Holdings, Inc. (NYSE:HTZ), oil-and-gas issue Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and Beijing-based Internet issue Bitauto Hldg Ltd (ADR) (NYSE:BITA). Here's a quick look at how HTZ, PBR, and BITA are performing on the charts so far.

  • HTZ has plunged almost 13% to $19.80 this afternoon, after the company said it will restate its financial statements for 2011 through 2013 amid accounting errors that will reduce previously stated net income by roughly $87 million, collectively. Additionally, Hertz Global Holdings, Inc. announced plans to cut costs by $100 million. It's been a tough two months for HTZ both on and off the charts, and since topping out at a record peak of $31.61 in late August, the shares have surrendered 37% of their value. Against this backdrop, option traders have been upping the bearish ante, as evidenced by the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.15, which ranks in the 98th annual percentile.

  • In the midst of an ongoing money laundering and bribery scandal -- which included today's arrest of a former executive -- PBR said it is delaying the release of its third-quarter earnings report, which was slated for early next Monday. As such, the stock plunged to a nine-year low of $9.51 earlier, but was last seen down 3.3% at $9.85. Similar to HTZ, the equity has had a hard time on the charts since hitting an annual high of $20.94 in early September, with Petroleo Brasileiro Petrobras SA (ADR) off nearly 53% -- a move not gone unnoticed by option traders. In fact, the stock's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.42 ranks just 2 percentage points from a 52-week peak, meaning puts have been bought to open over calls at a near-annual-high clip in recent months. In today's session, a number of speculators are betting on a steeper retreat into single-digit territory, and are buying to open PBR's December 10 puts.

  • Following in the post-earnings footsteps of sector peer Alibaba Group Holding Ltd (NYSE:BABA) is BITA, which has rallied nearly 14% to $90.25, thanks to its well-received earnings report and upwardly revised current-quarter revenue forecast. Today's bullish gap is nothing new for a stock that's nearly tripled in value on a year-to-date basis, and a continued rise could prompt a round of price-target hikes from the brokerage bunch. At present, Bitauto Hldg Ltd's (ADR) consensus 12-month price target of $81 stands at a discount to current trading levels.

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