Stocks On the Move: iDreamSky Technology Ltd (ADR), Pandora Media Inc, and Nuverra Environmental Solutions Inc

DSKY, P, and NES are moving sharply in Tuesday's trading

Nov 25, 2014 at 11:45 AM
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U.S. markets have retreated from the record highs tagged earlier, as a drop in consumer confidence overshadows an unexpected rise in third-quarter gross domestic product (GDP). Among equities making significant moves are China-based mobile gaming platform iDreamSky Technology Ltd (ADR) (NASDAQ:DSKY), Internet radio concern Pandora Media Inc (NYSE:P), and environmental solutions specialist Nuverra Environmental Solutions Inc (NYSE:NES). Here's a quick look at how DSKY, P, and NES are performing on the charts today.

  • Similar to sector peer Qihoo 360 Technology Co Ltd (NYSE:QIHU), DSKY is in rally mode after the company unveiled its third-quarter earnings results. Since going public in early August, shares of DSKY have tacked on 4% to trade at $18.21 -- including today's 8% pop -- and sentiment among the brokerage bunch remains decidedly optimistic. In fact, both of the analysts covering the shares maintain a "strong buy" recommendation. Plus, the consensus 12-month price target of $28.50 stands at a 56.5% premium to current trading levels -- and resides in territory yet to be charted by iDreamSky Technology Ltd (ADR).

  • P, meanwhile, has plunged nearly 6% -- and surrendered a short-term foothold atop its 20-day moving average along the way -- to churn near $18.59. Sparking today's sell-off is a downgrade to "underperform" from "market perform" at FBR Securities, and given the equity's more than 30% year-to-date deficit, another round of bearish brokerage notes could be on the horizon. At present, 72% of analysts covering the shares deem them worthy of a "buy" or better rating, while the average 12-month price target of $30.25 represents expected upside of 63% to the stock's present price. Meanwhile, in the options pits, P's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.26 ranks higher than 89% of similar readings taken in the past year. An unwinding of these bullish bets in the face of Pandora Media Inc's downward trajectory could pressure the shares lower.

  • A freshly inked contract with XTO Energy -- a division of Exxon Mobil Corporation (NYSE:XOM) -- has taken front seat to a pair of mixed brokerage notes, with shares of NES up 10.7% at last check to linger near $11.12. Specifically, Stifel cut its price target on the stock to $16 from $20 -- and reiterated its "buy" rating -- while Cowen waxed optimistic on the new partnership, saying, "We believe [the contract] is indicative of the transformation happening both in the region and at Nuverra's operations." It's been a tough year for Nuverra Environmental Solutions Inc, which has shed roughly one-third of its value in 2014. Nevertheless, call buying has reached fever pitch in recent weeks, as evidenced by the equity's 10-day ISE/CBOE/PHLX call/put volume ratio of 26.00, which ranks in the highest percentile of its annual range. Considering 39% of the stock's float is sold short, though, a portion of this activity may have been at the hands of shorts hedging against any unexpected upside.

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