Buzz Stocks: BlackBerry Limited, Cyberonics, Inc., and Aruba Networks, Inc.

Today's stocks to watch include BlackBerry Ltd (BBRY), Cyberonics, Inc. (CYBX), and Aruba Networks, Inc. (ARUN)

by Josh Selway

Published on Feb 26, 2015 at 9:42 AM
Updated on Apr 20, 2015 at 5:32 PM

U.S. stocks are modestly higher out of the gate. Among the equities in focus are tech issue BlackBerry Ltd (NASDAQ:BBRY), medical device maker Cyberonics, Inc. (NASDAQ:CYBX) and network solutions provider Aruba Networks, Inc. (NASDAQ:ARUN).

  • BBRY is up 1.5% in early trading at $10.70, after announcing a new partnership with Google Inc (NASDAQ:GOOGL). Technically speaking, BlackBerry Ltd has been pushing forward recently, gaining 5.4% month-to-date. Regardless, one-fifth of the equity's float remains sold short. What's more, these bearish bets represent more than a week's worth of pent-up buying power, at typical trading levels. Changing direction, analysts have taken a wait-and-see approach toward the shares. Three brokerage firms currently rate BBRY a "buy" or better, with 12 deeming it a "hold," and four others handing out "sell" or worse recommendations. If the security can extend its recent rally, there's potential for an exodus of shorts, and a shift in analyst sentiment, to boost the stock.

  • CYBX is booming today, adding 24%, after announcing a merger with fellow medical device maker Sorin, and posting an earnings beat. Not that the shares needed a stimulus, having already added over 55.4% since hitting an annual low of $48.19 on Nov. 20, last seen at $74.87. What's interesting is, like BBRY, Cyberonics, Inc. has been heavily targeted by short sellers. The 13.4% of its float sold short represents nearly two weeks of trading, at its normal daily trading pace. As far as analysts go, four give CYBX a "strong buy" rating, while the remaining three maintain tepid "hold" recommendations. This could pave the way for possible short-covering activity and/or a round of upgrades.

  • ARUN rallied toward the end of yesterday's session, finishing more than 21% higher at $22.24, on reports that Hewlett-Packard Company (NYSE:HPQ) is considering buying the company. Before yesterday's jump, Aruba Networks, Inc. had been hovering around breakeven on a year-to-date basis, but speculators had been placing bets in anticipation of a breakout. Specifically, the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 10.19 ranks higher than three-fourths of readings from the past year. In short, option traders have been buying to open calls over puts at a rate quicker than usual. Meanwhile, the stock is 0.4% lower at $22.19, as the company prepares for its fiscal second-quarter earnings report, scheduled for after the close today.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Patent Lawsuit Loss Sends AMRN Stock Spiraling
Amarin just lost a major U.S. patent lawsuit for its heart drug Vascepa
RH Stock Sinks Despite Earnings Beat
J.P. Morgan Securities and Cowen and Company cut their price targets
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.