Buzz Stocks: MoneyGram, Alexion, and Crestwood Midstream

Today's stocks to watch in the news include Moneygram International Inc (NASDAQ:MGI), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), and Crestwood Midstream Partners LP (NYSE:CMLP)

May 6, 2015 at 9:38 AM
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Stocks are rebounding, amid a busy day of economic data. Meanwhile, among equities in focus, money transfer specialist Moneygram International Inc (NASDAQ:MGI), drugmaker Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), and oil-and-gas issue Crestwood Midstream Partners LP (NYSE:CMLP) are all making M&A waves.

  • MGI is up 23.2% in early trading to linger near $9.61, following reports the firm is a potential takeover target for The Western Union Company (NYSE:WU). Today's bull gap has pushed the stock through the upper end of its recent trading range; specifically, MGI has been bouncing between $7.50 and $9.50 since taking an earnings-induced plunge in late October. On the sentiment front, short sellers have been jumping ship en masse, and over the last two reporting periods, short interest plunged 22.4%. It still accounts for a healthy 7.6% of Moneygram International Inc's float, though, and would take nearly six sessions to cover, at average daily trading levels.

  • ALXN will pony up $8.4 billion in cash and stock to purchase rare disease specialist Synageva Biopharma Corp (NASDAQ:GEVA). This equates to $115 per share of GEVA, or a 20% premium to last night's close at $95.87. The news isn't being well-received on Wall Street, with ALXN down 8.2% at the open to trade at $157.74 -- widening its year-to-date loss to 15%. In the options pits, short-term speculators have rarely been as put-skewed as they are now. In fact, Alexion Pharmaceuticals, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 1.10 rests just 11 percentage points from a 52-week peak.

  • CMLP has popped 6.9% out of the gate to trade at $16.67, after the company said it will be acquired by its affiliate -- Crestwood Equity Partners LP (NYSE:CEQP) -- in an all-stock deal valued at roughly $3.5 billion. Longer term, though, CMLP has shed more than 24% over the past 52 weeks. Analysts, meanwhile, have been split. Of the 11 brokerage firms following the shares, six have doled out "buy" or better ratings, versus five "holds." Meanwhile, Crestwood Midstream Partners LP's average 12-month price target of $17.86 stands at a 14.6% premium to Tuesday's settlement.
 

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