Buzz Stocks: Dunkin', ARRIS Group, NCR Corporation

Today's stocks to watch in the news include Dunkin Brands Group Inc (DNKN), ARRIS Group, Inc. (ARRS), and NCR Corporation (NCR)

Griffin Kruse
Apr 23, 2015 at 9:29 AM
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Futures are likely headed lower today, as traders react to earnings from several big-name stocks, including coffee king Dunkin Brands Group Inc (NASDAQ:DNKN). In other company news, today's stocks to watch include telecommunications firm ARRIS Group, Inc. (NASDAQ:ARRS) and ATM-maker NCR Corporation (NYSE:NCR).

  • The shares of DNKN are 8.9% higher ahead of the bell after the company posted a first-quarter earnings beat, announced a quarterly dividend, and raised its outlook for 2015 (subscription required). Technically speaking, the shares have performed well lately, up 11.9% year-to-date to close Wednesday at $47.72. What's more, the stock notched an annual high of $49.56 on April 13, which will likely be toppled today. Looking to the options pits, short-term traders have been more call-heavy than usual on Dunkin Brands Group Inc, as its Schaeffer's put/call open interest ratio (SOIR) of 0.18 ranks in the 1st percentile of its annual range. Said another way, near-term speculators have rarely been this call-skewed on DNKN over the past year. Meanwhile, short interest on DNKN has declined by roughly 14% over the last two reporting periods, but still accounts for 8.6% of the stock's available float. It would take these traders more than seven sessions to cover their bets, at average trading volumes.
  • ARRS announced that it is purchasing U.K.-based set-top box maker Pace plc for $2.1 billion in cash and stock, in an attempt to boost global sales and decrease corporate taxes. At last check, the shares of ARRIS Group, Inc. were 20.2% higher in electronic trading, which will extend a 15.1% year-over-year lead, and should put the shares in decade-plus-high territory. Last night, ARRS closed at $30.54. Many traders are likely bemoaning the news, as puts have been favored over calls in the options pits recently. Drilling down, ARRS' 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 5.24 is higher than 99% of all similar readings from the past year. However, the brokerage bunch is mostly optimistic on the stock, as five out of six covering analysts rate the stock a "buy" or better, with no "sell" or worse recommendations to be found.
  • Reports that NCR is exploring strategic options (subscription required) -- including a potential sale -- has the shares 3.9% higher in pre-market trading. On the charts, NCR Corporation has spent the past few months bouncing between support at $26 and resistance near $31, to close Wednesday at $30.07. Sentiment in the options pits has been bearish, though, as NCR's 10-day ISE/CBOE/PHLX put/call volume ratio of 4.86 reads in the 91st percentile of its annual range. Echoing this indicator is the security's SOIR of 0.75, which is higher than 98% of all other annual readings from the past year. Said another way, short-term traders have rarely been this put-biased towards NCR over the past 12 months.

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