Buzz Stocks: The Wendy's Company, Synchronoss Technologies, Inc., and Vera Bradley, Inc.

Today's stocks to watch in the news include Wendys Co (NASDAQ:WEN), Synchronoss Technologies, Inc. (NASDAQ:SNCR), and Vera Bradley, Inc. (NASDAQ:VRA)

by Alex Eppstein

Published on Jun 3, 2015 at 9:23 AM

U.S. stocks are getting a pre-market lift, thanks to encouraging data and an interest rate decision across the pond. In company news, today's stocks to watch include fast-food chain Wendys Co (NASDAQ:WEN), cloud concern Synchronoss Technologies, Inc. (NASDAQ:SNCR), and accessories designer Vera Bradley, Inc. (NASDAQ:VRA)

  • WEN is sitting pretty this morning, after the company announced it will buy back $1.4 billion in stock and sell a bakery business to streamline operations. The chain also slashed its full-year adjusted earnings guidance to reflect the bakery sale. As such, the shares are 3.2% higher ahead of the bell, looking to add to their nearly 23% year-to-date advance -- and make a run at last month's seven-year high of $11.67. Should Wendys Co continue to trek higher, it could prompt a round of bullish analyst notes. Nine of 11 brokerage firms rate the stock a "hold" or worse, and WEN's consensus 12-month price target of $11.71 represents a slim 5.5% premium to Tuesday's close at $11.10.

  • SNCR is reportedly looking to be purchased in a potential agreement that could be worth more than $2 billion, and is drawing interesting from several private-equity firms. The buyout buzz has the shares perched 18.4% higher ahead of the bell, relative to last night's close at $42.53. Recently, Synchronoss Technologies, Inc. has struggled on the charts, dropping 19% since its late-April high of $52.45, and breaching most of its historically supportive trendlines. Short sellers could get burned by today's expected gap higher. Over 12% of SNCR's float is sold short, representing 12 days' worth of pent-up buying activity, at average daily volumes.

  • Finally, VRA was temporarily halted in electronic trading while the company reported lackluster first-quarter earnings and issued disappointing guidance. Although pre-market trading has resumed, the stock is getting pummeled -- down nearly 14% ahead of the bell, and headed for fresh all-time lows. It's already been a tough year for Vera Bradley, Inc., which has shed 30.6% in 2015 to rest at $14.14 -- ushered lower by its 10-week moving average, and hitting a record low of $13.15 just yesterday. Short sellers have been piling on amid this sell-off, with more than one-quarter of VRA's float sold short. At the stock's typical daily trading levels, it would take nearly 18 sessions to repurchase all these bearish bets.

A Schaeffer's exclusive!

The Expert's Guide

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



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 Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
UNH Stock Pops on Accelerated Payment Promise
Analysts are very bullish on UnitedHealth stock
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
The Top Lithium Play of 2020
Click to continue to advertiser's site.