Buzz Stocks: Best Buy Co Inc, Celldex Therapeutics, Inc., and Diamond Resorts International Inc

Today's stocks to watch in the news include Best Buy Co Inc (NYSE:BBY), Celldex Therapeutics, Inc. (NASDAQ:CLDX), and Diamond Resorts International Inc (NYSE:DRII)

by Karee Venema

Published on Feb 25, 2016 at 9:28 AM
Updated on Mar 31, 2016 at 3:40 PM

Stocks are pointed higher ahead of the bell amid stabilizing oil prices. Meanwhile, among specific equities in focus are electronics retailer Best Buy Co Inc (NYSE:BBY), drugmaker Celldex Therapeutics, Inc. (NASDAQ:CLDX), and hospitality and management firm Diamond Resorts International Inc (NYSE:DRII).

  • BBY has been on a tear since bottoming at an annual low of $24.97 last month -- up 24%. The security looks ready to extend this momentum today, as traders weigh stronger-than-forecast fourth-quarter earnings, a $1 billion stock buyback, and a dividend boost against a disappointing current-quarter profit forecast. Should the shares continue with the positive price action, an unwinding of bearish sentiment both in and out of the options pits could add fuel to the fire. Currently, half of the analysts covering Best Buy Co Inc maintain a "hold" or worse opinion, while the consensus 12-month price target of $34.41 is within a chip shot of last night's close at $31.47 -- leaving the door wide open for a round of upgrades and/or price-target hikes.

  • A narrower-than-expected fourth-quarter loss and stronger-than-forecast revenue have shares of CLDX up 7.6% in electronic trading, with President and CEO Anthony Marucci explaining that, "In addition to the strides made in the RINTEGA program, we continued to execute across the entire pipeline in 2015, initiating four new combination studies for the varlilumab program and continuing to enroll patients to ongoing studies of glembatumumab vedotin in both triple negative breast cancer and metastatic melanoma." CLDX could certainly use a boost on the charts, considering the stock is down 56% year-to-date to $6.87. Option traders, meanwhile, have been loading up on long calls in recent weeks, per Celldex Therapeutics, Inc.'s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 18.60 -- in the 83rd annual percentile.

  • DRII is eyeing an 18% pop out of the gate, after the company said it has formed a committee to explore strategic options and unveiled fourth-quarter earnings. Since notching a two-year low of $16.19 on Feb. 3, shares of Diamond Resorts International Inc have tacked on 18% to trade at $19.11. What's more, today's projected price move has the stock on track to close north of its 32-day moving average for the first time since early December. A continued trek higher may have more shorts hitting the exits -- which could provide DRII with an additional boost. Although short interest declined 10.8% in the most recent reporting period, it still accounts for 21.2% of the stock's available float, or 7.4 times the average daily trading volume.
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