Buzz Stocks: Target, Palatin Tech, and Dot Hill Systems

Today's stocks to watch include Target Corporation (TGT), Palatin Technologies, Inc. (PTN), and Dot Hill Systems Corp. (HILL)

Aug 19, 2015 at 9:35 AM

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U.S. stocks are lower, as investors are jittery ahead of this afternoon's release of the latest Federal Open Market Committee (FOMC) meeting minutes. Among the equities in focus are retailer Target Corporation (NYSE:TGT), biopharmaceutical concern Palatin Technologies, Inc. (NYSEMKT:PTN), and data storage specialist Dot Hill Systems Corp. (NASDAQ:HILL)

TGT is 5.1% higher at $84.40 this morning, following its second-quarter earnings report. Not only did Target Corporation top analysts' expectations, but the company also boosted its profit outlook for the year. This news follows yesterday's revelation that Visa Inc (NYSE:V) agreed to pay TGT up to $67 million for a 2013 data breach. Technically, TGT has been consolidating into support from its 10-month moving average, and is within striking distance of an all-time high. As for sentiment, 12 of the 20 analysts tracking the retailer rate it a "hold" or worse. This set-up leaves the door open for upgrades, which could give the stock an added boost.

PTN is drawing attention this morning, after the U.S. Food and Drug Administration (FDA) approved the first drug to treat low sexual desire in women. The drug, Addyi (nicknamed the "female Viagra"), is made by Palatin Technologies, Inc.'s rival Sprout Pharmaceuticals, but Roth Capital Partners opined that PTN's similar drug in development (named bremelanotide) is "differentiated" by a better safety profile. Furthermore, PTN's drug is taken on an as-needed basis, as opposed to Addyi's daily dose. Shares of PTN are 21% higher at $1.14.

Finally, HILL skyrocketed to an 11-year high of $9.70 out of the gate, after Seagate Technology PLC (NASDAQ:STX) announced that it will purchase the storage specialist for $695 million, or $9.75 per share. The per-share price represents an 88% premium to Dot Hill Systems Corp.'s Tuesday closing price of $5.18. Both companies believe the sale will close in the fourth quarter, assuming HILL's shareholders lend their support to the move.

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