Buzz Stocks: Lumber Liquidators, Repros, Receptos

Today's stocks to watch in the news include Lumber Liquidators Holdings Inc (LL), Repros Therapeutics Inc (RPRX), and Receptos Inc (RCPT)

Apr 2, 2015 at 9:29 AM
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Futures are signaling a slower start to the final trading day of the week, as speculators take a cautious approach to today's raft of economic data and a speech from Fed Chair Janet Yellen. Among specific equities in focus are flooring firm Lumber Liquidators Holdings Inc (NYSE:LL), as well as drugmakers Repros Therapeutics Inc (NASDAQ:RPRX) and Receptos Inc (NASDAQ:RCPT).

  • March was a volatile month for LL, as the company attended to a flooring scandal. The stock started April off with a 7.2% pop to settle at $33.01 -- and above its 20-day moving average for the first time since late February -- and pared its year-to-date deficit to 50.2%. LL is poised to extend this positive price action today, after the firm said that, although same-store sales slumped last month, preliminary numbers for the first quarter arrived above estimates. On the sentiment front, options traders have kept the faith. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Lumber Liquidators Holdings Inc's 10-day call/put volume ratio of 2.05 ranks in the 91st annual percentile. In other words, calls have been bought to open over puts at a faster clip just 9% of the time within the past year.

  • RPRX is up 17% in electronic trading, thanks to a nod from the Food and Drug Administration (FDA). Specifically, the FDA said it will accept Repros Therapeutics Inc's new drug application for Androxal, a treatment for secondary hypogonadism in overweight males. Today's projected price move could have shares of RPRX moving back into the black on a year-to-date basis, after closing Wednesday at $8.49 -- their lowest settlement since Feb. 10. Overall, sentiment among the brokerage bunch is skewed toward the optimistic side. For starters, three "strong buy" ratings are levied toward the stock, versus one "hold" suggestion. Plus, the average 12-month price target of $28.20 more than triples current trading levels, and sits in territory not charted since September 2013.

  • It's been a big week for RCPT, which hit a record peak of $203.25 yesterday, before closing up 5.2% at $173.44, after the firm gave a well-received update on its multiple sclerosis drug. The stock is set to continue this run higher today, amid speculation Receptos Inc is exploring strategic options, including a possible sale. Technically speaking, the security has been a beast, more than quadrupling in value year-over-year. Meanwhile, in the options pits, speculators have shown a preference for calls over puts. Traders at the ISE, CBOE, and PHLX have bought to open 5.18 calls for every put over the past two weeks. Additionally, RCPT's Schaeffer's put/call open interest ratio (SOIR) of 0.57 indicates call open interest outweighs put open interest among options slated to expire in three months or less.

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