Twitter Inc (TWTR) Headlines Stocks Testing IPO Levels

Twitter Inc (TWTR) has been struggling to surmount its IPO price recently -- and it's not the only one

by Alex Eppstein

Published on Aug 25, 2015 at 2:34 PM
Updated on Jun 24, 2020 at 10:16 AM

Buoyed by broad-market momentum, Twitter Inc (NYSE:TWTR) muscled back atop its IPO price of $26 at the open. However, the foothold quickly dissolved, with the shares last seen 0.6% lower at $25.01. Meanwhile, option traders and short sellers alike are keeping a beat on the stock, hoping it adds to its 30% year-to-date deficit.

During the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TWTR has racked up a put/call volume ratio of 0.42, which ranks in the top quartile of its annual range. In other words, speculators have bought to open puts over calls at a more rapid-than-usual pace in recent months.

Echoing this, short sellers have been upping the ante on TWTR recently. Over the past two reporting periods, short interest on the stock spiked over 27%, and now accounts for 5% of the total float. Yesterday, however, the stock landed on the short-sale restricted list, and remains there today.

Taking a step back, Twitter Inc isn't the only high-profile name struggling around its IPO price. China-based e-tailer Alibaba Group Holding Ltd (NYSE:BABA) plunged below this level yesterday -- $68, specifically -- en route to a record low of $58. However, the stock has since bounced back, up 5.4% at $69.37. There are plenty of short sellers counting on a resumed trek lower, with 5.6% of BABA's float sold short.

Along similar lines, Wall Street newbie Fitbit Inc (NYSE:FIT) hit an intraday low of $30.51 yesterday. While this is still well above the stock's mid-June IPO price of $20, it's just a shade above $30.40 -- where FIT actually opened on its first day of trading. Today, though, the stock has battled back, adding 3.3% to hover near $38.60.

Finally, Shake Shack Inc (NYSE:SHAK) has been testing its IPO opening price of $47 recently, sliding as far south as $41.50 on Monday. The shares bounced at today's open -- approaching the $50 half-century mark -- before losing their momentum. At last check, SHAK was up 1.7% at $46.13 -- just 0.5% above its opening day close at $45.90.

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