Management Reports Boost FireEye Inc, Angie's List Inc

FireEye Inc (FEYE) and Angie's List Inc (ANGI) are running hot after the companies announced updates to their respective management teams

by Alex Eppstein

Published on Sep 8, 2015 at 12:33 PM
Updated on Sep 8, 2015 at 12:33 PM

Management changes can have a huge impact on stock prices, and that's certainly the case today. In particular, FireEye Inc (NASDAQ:FEYE) and Angie's List Inc (NASDAQ:ANGI) are running hot on a pair of executive updates -- and potentially putting pressure on option bears.

For starters, FEYE has surged 4.7% to trade at $38.20, after the company named Michael Berry its newest senior vice president and CFO, and added Tesla Motors Inc (NASDAQ:TSLA) finance executive Deepak Ahuja to its board of directors. This is more of the same for a stock that's added 21% year-to-date.

One group that's likely unhappy with the news-induced gains is option traders. During the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FEYE has racked up a put/call volume ratio of 0.66 -- just 2 percentage points from a 52-week peak. In other words, speculators have rarely bought to open puts over calls at a faster rate. Should these bears throw in the towel, it could provide a lift to FEYE.

Short sellers are probably feeling the heat, too. Over 15% of FireEye Inc's float is sold short, representing nearly one week's worth of pent-up buying demand, at typical volumes. In other words, a short-covering rally could be just around the corner.

Turning to ANGI, the business review site named Best Buy Co Inc (NYSE:BBY) executive Scott Durchslag its new president and CEO. The appointment has sent the shares 3.2% higher at $5.20 -- though the stock's 2015 deficit remains at 16.5%.

Option traders and short sellers are probably crossing their fingers that ANGI's longer-term struggles will resume. The security's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.28 rests just 11 percentage points from an annual high. Similarly, 18.4% of Angie's List Inc's float is dedicated to short interest, representing about two weeks' worth of trading activity, at typical volumes.

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