Buzz Stocks: Nike Inc, Depomed Inc, and BioMarin Pharmaceutical Inc.

Today's stocks to watch include Nike Inc (NKE), Depomed Inc (DEPO), and BioMarin Pharmaceutical Inc. (BMRN)

Nov 20, 2015 at 9:48 AM
facebook twitter linkedin

Traders are eyeing earnings, commodities, and speeches from regional Fed presidents today, as U.S. indexes attempt to finish the week strong. Among the equities in focus are blue-chip athletic issue Nike Inc (NYSE:NKE), and drugmakers Depomed Inc (NASDAQ:DEPO) and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN).

  • NKE is 4.3% higher $131.15, after announcing a 14% dividend increase, as well as a 2-for-1 stock split and a $12 billion stock buyback plan. This marks the fourteenth consecutive year Nike Inc has raised its dividend. Just one month ago, the shares hit an all-time high of $133.52, and are within striking distance of that level today. All signs point to optimism on Nike, as 20 out of 24 brokerages currently give the stock a "buy" rating or better. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NKE boasts a 10-day call/put volume ratio of 1.42, higher than 62% of comparable readings taken in the past year.. 
  • Horizon Pharma PLC (NASDAQ:HZNP) has withdrawn its offer to buy DEPO, following a California court ruling. Horizon first made a roughly $3 billion offer in May, which Depomed Inc rejected. In July, HZNP placed a hostile bid. Depomed has continuously rejected offers and taken measures to defend itself, including adopting a "poison pill," and last night the firm said it "has a bright future as an independent company." DEPO is down 1.5% at $19.10, but short sellers and options traders should be pleased. Nearly 18% of the stock's total available float is currently sold short, accounting for nearly a week of trading, at DEPO's average daily volume. Meanwhile, the stock's 50-day put/call volume ratio on the ISE/CBOE/PHLX stands at 0.50 -- in the 86th bearish percentile of all readings from the past year. 
  • BMRN is off to a rough start today, down 7% at $95.92, after the FDA raised questions about its drug for a muscle-wasting disorder, and recommended that BioMarin Pharmaceuticals Inc. run further studies on effects of the treatment in children aged five and under. This news comes just two days after BMRN got a boost from a glowing Goldman Sachs recommendation, which included a price target of $158 -- in never-before-seen territory. Options traders are likely celebrating today's drop, as the stock's 10-day put/call volume ratio on the ISE/CBOE/PHLX sits at 6.31 -- meaning more than six puts have been bought for every call over the last two weeks of trading. This figure is also just 1 percentage point shy of a 52-week high. So far in November, BMRN has dropped roughly 17.8 -- a notable departure from the norm


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!