Buzz Stocks: MGM Resorts International, Allergan PLC, and Sanofi SA (ADR)

Today's stocks to watch include MGM Resorts International (MGM), Allergan PLC (AGN), Sanofi SA (ADR) (SNY)

Oct 29, 2015 at 9:48 AM
facebook twitter linkedin

U.S. stocks are lower after this morning's GDP miss. Among the equities in focus are casino operator MGM Resorts International (NYSE:MGM), as well as pharmaceutical concerns Allergan PLC (NYSE:AGN) and Sanofi SA (ADR) (NYSE:SNY).

  • MGM is up 5.7% at $22.98, thanks to news that it is going to spin off 10 resorts into a publicly traded real estate investment trust (REIT).  MGM Resorts International is also benefiting from a solid third-quarter earnings report. The shares are now trying to topple the $23 level, which has acted as resistance for more than a year. Recent option buyers are likely applauding today's news, as MGM's 10-day call/put volume ratio of 15.01 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 91% of the readings taken in the past 52 weeks. More bullish sentiment comes from analysts, where 10 of the 12 brokerages covering the equity rate it a "strong buy."
  • Turning to the pharmaceutical world, AGN has been halted, as the company reacts to The Wall Street Journal reports of early merger talks with Pfizer Inc. (NYSE:PFE) (subscription required). Allergan PLC said it can confirm "preliminary friendly discussions regarding a potential business combination transaction" with PFE, but it remains "strongly committed" to divesting its global generics business to Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). Ahead of the bell, AGN was pointed significantly higher, and is set to jump well above the $300 level for the first time in more than a month. Sentiment on the pharmaceutical concern is already bullish, as 15 of the 16 analysts tracking AGN rate it a "buy" or better. This sentiment is mirrored in the option pits, where the firm's 50-day ISE/CBOE/PHLX call/put volume ratio comes in at 2.55, ranking in the 98th percentile of its annual range.
  • SNY is down 5.7% ta $48.56, after the company lowered its three-year sales forecast for diabetes treatments. Sanofi SA believes that its sales of Lantus insulin will fall between 4% and 8% through 2018. Technically, the stock has fallen 11.7% since mid-August's high of $54.98, and is now set to end beneath its 10-day and 20-day moving averages for the first time since Oct. 1. Pessimism has been ramping up among option buyers, as SNY's 50-day put/call volume ratio on the ISE/CBOE/PHLX is at a 52-week high of 0.50. 

Special Offers from Schaeffer's Trading Partners