Buzz Stocks: Aerie, Atmel Corporation, Cablevision

Today's stocks to watch include Aerie Pharmaceuticals Inc (AERI), Atmel Corporation (ATML), and Cablevision Systems Corporation (CVC)

Sep 17, 2015 at 10:14 AM
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It's the day we've all been waiting for, as the Federal Open Market Committee (FOMC) will adjourn its two-day meeting and possibly announce the first rate hike in years. U.S. benchmarks are hovering slightly below breakeven as everyone sets their alarms for 2 p.m. ET. Today's equities in focus are biotech concern Aerie Pharmaceuticals Inc (NASDAQ:AERI), microcontroller maker Atmel Corporation (NASDAQ:ATML), and cable operator Cablevision Systems Corporation (NYSE:CVC).

  1. AERI has rocketed 66% higher to $30.01 -- territory not explored since its late-April bear gap -- after reporting favorable results from the second Phase 3 trial of its glaucoma treatment (subscription required). Brokerage houses responded to this positive news, as Aerie Pharmaceuticals Inc received no fewer than seven price-target elevations after the announcement -- including Brean raising its target to $48 from $33, Needham upping its target to $45 from $27, and RBC raising AERI's target to $44 from $31. Prior to this announcement, the stock was kicking sideways between $15 and $20. However, today's news could kick off a short-covering rally, as 22.3% of the pharmaceutical firm's float is sold sort, representing more than eight days' of pent-up buying demand, at AERI's average pace of trading.
  • ATML dipped 1.5% to $8.06, after Bloomberg said China Electronics Corp. is in talks to acquire the chipmaker. According to the report, China Electronics wants to purchase Atmel Corporation at about $8.50 per share -- not far from ATML's closing price of $8.18 yesterday. Analysts are bullishly aligned toward the chip concern, as seven of the 12 brokerages tracking ATML rate it a "buy" or better. On the charts, the stock has shed 4.3% in 2015, and is now facing a potential headwind in the form of its 10-week moving average.

  • CVC is keeping this week's M&A theme alive, as European telecommunications and cable company Altice announced agreed to purchase the American firm for $17.7 billion, or $34.90 per share -- a 22% premium to CVC's closing price of $28.54 yesterday. The purchase of Cablevision Systems Corporation is a continuation of Altice's U.S. expansion attempts. Not surprisingly, CVC jumped to a 12-year high of $33.21 out of the gate, and was last seen 15.6% higher at $33. The shorts are likely kicking rocks, as more than 12% of CVC's float is sold short, representing nine days' worth of pent-up buying demand, at the stock's average daily trading volume.

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