Analyst Update: AcelRx Pharma, AVEO Pharma, Twitter

Analysts adjusted their ratings on AcelRx Pharmaceuticals Inc (ACRX), AVEO Pharmaceuticals, Inc. (AVEO), and Twitter Inc (TWTR)

Mar 9, 2015 at 12:15 PM
facebook twitter linkedin


Analysts are weighing in today on drugmakers AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) and AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO), as well as microblogging platform Twitter Inc (NYSE:TWTR). Here's a quick look at today's brokerage notes on ACRX, AVEO, and TWTR.

  • Prior to the release of ACRX's fourth-quarter earnings data tonight, the stock is swimming in the red after the U.S. Food and Drug Administration (FDA) requested more data on pain drug Zalviso. As a result, Canaccord Genuity cut its price target on the security to $6 from $8 while underscoring its "hold" rating. At last check, the shares of AcelRx Pharmaceuticals Inc are down 34% at $5.77, and earlier touched a nearly two-year low of $5.07. Year-to-date, the struggling stock is down 13.8%. Prior to today's drop, bearish sentiment in the options pits was ramping up, as ACRX's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.32 sits in the 82nd percentile of its annual range. What's more, over 41% of the stock's available float is sold short, which would take over 32 sessions to cover, at average trading volumes.

  • RBC upgraded its opinion of AVEO this morning, hiking its price target to $3 from $2 and its rating to "sector perform" from "underperform." In response, the shares are up 8.7% to hit $1.63, adding to a 94% year-to-date gain. In fact, the stock touched a two-year peak of $2.02 on Friday, thanks to promising data on its tivozanib drug. Not surprisingly, sentiment in the equity's options pits is bullish, as AVEO's 50-day ISE/CBOE/PHLX call/put volume ratio of 43.42 sits in the 78th percentile of its annual range.

  • Earlier today, Cannacord Genuity released an upbeat investment thesis of TWTR, saying, "We believe Twitter stock is mid-way through a process of winning back investors after a rough end to 2014," and waxed optimistic on the stock's 2015 prospects. On the charts, the shares of Twitter Inc have added 1.7% today to hit $47.56, contributing to a 32.6% year-to-date gain. In conjunction with TWTR's technical breakout, sentiment in the options pits is nearing an optimistic climax. Specifically, TWTR's 10-day ISE/CBOE/PHLX call/put volume ratio of 3.77 sits just 4 percentage points away from the highest similar reading taken over the past year.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners