Buzz Stocks: Deutsche Bank AG, Fitbit Inc, and SolarCity Corp

Today's stocks to watch include Deutsche Bank AG (USA) (DB), Fitbit Inc (FIT), and SolarCity Corp (SCTY)

by Alex Eppstein

Published on Feb 10, 2016 at 9:29 AM

It's shaping up to be a good day for U.S. stocks, with futures pointed higher ahead of Fed Chair Janet Yellen's testimony before Congress. Meanwhile, financial firm Deutsche Bank AG (USA) (NYSE:DB), wearables expert Fitbit Inc (NYSE:FIT), and alternative energy issue SolarCity Corp (NASDAQ:SCTY) are among the equities in focus today.

  • DB is on fire this morning amid reports the company will institute an emergency debt buyback plan. The shares could certainly use the help, as they've lost nearly half their value on a year-over-year basis, and yesterday hit a record low of $14.78 before closing at $15.38. Ahead of the bell, Deutsche Bank AG has soared 7.6%. While this should lift the spirits of shareholders, option traders can't be happy with the expected bull gap. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 10.34 puts for every call -- a ratio that sits just 5 percentage points from an annual high.

  • Salesforce.com, inc. (NYSE:CRM) CEO Marc Benioff has reportedly taken a 5.3% passive stake in FIT, while an SEC filing indicates the Vanguard Group has taken a 9.2% passive stake, with the company's share lockup period set to expire today. The news has Fitbit Inc pointed 4% higher ahead of the open, after hitting a record low of $13.99 on Tuesday. Despite the stock's technical troubles, the brokerage bunch is firmly in the bullish camp. Sixteen of 21 analysts tracking FIT rate it a "buy" or better, with not a single "sell" rating to be found. What's more, the equity's consensus 12-month price target of $38 stands at a 166% premium to last night's settlement at $14.30.

  • SCTY is set to sink over 30% at the open -- putting it in two-year-low territory, and on track for its worst day in history -- after the company's earnings report failed to impress. Specifically, SolarCity Corp offered up bleak current-quarter guidance, said it installed fewer rooftop solar systems than forecast for a second consecutive quarter, and warned of slowing installation growth. To make matters worse, analysts are pouncing on the stock, with no fewer than eight cutting their price targets on the stock. Among them was Raymond James, which slashed its outlook to $60 from $75, but upgraded its rating to "strong buy" from "outperform." Elsewhere, short sellers should be pleased with these developments. Over 42% of SCTY's float is sold short, representing almost eight sessions' worth of trading activity, at the stock's typical daily trading volumes. Last night, the shares settled at $26.35.
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