Buzz Stocks: Horizon, Prima Biomed, Advance Auto Parts

Today's stocks to watch in the news include Horizon Pharma PLC (NASDAQ:HZNP), Prima Biomed Ltd. (NASDAQ:PBMD), and Advance Auto Parts, Inc. (NYSE:AAP)

Jul 7, 2015 at 9:22 AM
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U.S. stocks are poised to pop, despite ongoing uncertainty surrounding Greece's future. In company news, today's stocks to watch include drugmakers Horizon Pharma PLC (NASDAQ:HZNP) and Prima Biomed Ltd. (NASDAQ:PBMD), as well as automotive retailer Advance Auto Parts, Inc. (NYSE:AAP)

  • HZNP has placed a hostile bid to buy Depomed Inc (NASDAQ:DEPO) for roughly $3 billion, or $29.25 per share. In May, DEPO rejected its rival's initial proposal, which had the same valuation. This M&A buzz has shares of Horizon Pharma PLC 2.4% lower ahead of the bell, which bucks the recent trend -- as they're up 168% year-to-date at $34.54, and hit a record high of $35.70 last week. The brokerage bunch is fully behind HZNP, with 100% of covering analysts rating the stock a "buy" or better. Plus, the equity's consensus 12-month price target of $38 stands in all-time-high territory.

  • PBMD is the recipient of a positive "scientific advice" nod from the European Medicines Agency, regarding the biotech's breast cancer treatment, IMP321. The news has the stock poised to surge more than 42% at the open, potentially adding to its 77.6% year-to-date lead, at $1.19. As recently as late May, Prima Biomed Ltd. was flirting with multi-year highs around the $6.50 level, but has since stair-stepped lower as shorts took profits. During the most recent reporting period, short interest on PBMD fell roughly 90%, and now represents less than 1% of the security's total float.

  • Finally, AAP will join the S&P 500 Index (SPX) tomorrow night, replacing Family Dollar Stores, Inc. (NYSE:FDO), which is being acquired by Dollar Tree, Inc. (NASDAQ:DLTR). Technically speaking, Advance Auto Parts, Inc. has had a nice run since consolidating atop the $142 level in late April and early May, closing at $163.42 yesterday. In fact, the stock struck a record peak of $165.16 in late June, and looks poised to take out all-time highs at the open. Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) are counting on a pullback. AAP's 10-day put/call volume ratio across those exchanges is 3.97, outranking 88% of comparable readings from the past year. A capitulation among these skeptics could result in tailwinds.

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