Buzz Stocks: FireEye Inc, Crocs, Inc., and Insys Therapeutics Inc

Today's stocks to watch include FireEye Inc (FEYE), Crocs, Inc. (CROX), and Insys Therapeutics Inc (INSY)

Nov 5, 2015 at 9:24 AM
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U.S. stocks are set to bounce back this morning. Among the equities in focus are cybersecurity firm FireEye Inc (NASDAQ:FEYE), footwear maker Crocs, Inc. (NASDAQ:CROX), and pharmaceutical concern Insys Therapeutics Inc (NASDAQ:INSY).

  • FEYE option traders might get more than they bargained for, as far as post-earnings volatility. After closing yesterday at $29.12, the stock is headed for an 18.6% plunge out of the gate -- into record-low territory -- which is more than the 11.5% move expected, per near-term at-the-money straddle prices yesterday. Over the past eight quarters, FEYE has averaged a one-day move of 9.6% -- about half of today's expected drop. Pressuring the shares ahead of the bell are FireEye Inc's lower-than-expected third-quarter sales and downwardly revised full-year revenue forecast. This morning, analysts are abandoning the bullish ship at a rapid-fire rate, with no fewer than 10 brokerage firms issuing price-target cuts. Plus, Wells Fargo and FBR both downgraded FEYE to "market perform."
  • CROX is also headed for a post-earnings dip, after the firm unveiled lackluster third-quarter revenue and named Carrie Teffner its chief financial officer. Specifically, CROX settled at $10.84 yesterday, but is set to drop roughly 5% and test its mettle in the round-number $10 region. CROX has closed in single-digit territory only once since mid-2010 -- just last week, in fact. Heading into earnings, Crocs, Inc. option buyers were picking up puts over calls at a faster-than-usual clip. The stock's 10-day put/call volume ratio of 1.82 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) registers in the 72nd percentile of its annual range. Short sellers will also be pleased with the expected drop. Short interest accounts for 15.4% of CROX's total available float, representing nearly seven times the equity's average daily trading volume.
  • INSY, on the other hand, is set to jump 4.7%, after the company reported stronger-than-expected third-quarter figures, announced a stock buyback plan, and said CEO Michael Babich is resigning. While Insys Therapeutics Inc didn't give a specific reason for the departure, the company has been under federal scrutiny for its marketing practices of Subsys. Quite a few shorts could be kicking rocks in light of the equity's expected uptick. It would take about a month to buy back all of the shorted INSY shares, at the stock's average daily trading volume. Likewise, INSY sports a 10-day ISE/CBOE/PHLX put/call volume ratio of 10.49 -- higher than 82% of all other readings from the past year, hinting at a healthier-than-usual appetite for bearish bets over bullish. On Wednesday, INSY settled at $26.38.
 

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