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Buzz Stocks: Weight Watchers International, Inc., Sunedison Inc, and Republic Airways Holdings Inc.

Today's stocks to watch include Weight Watchers International, Inc. (NYSE:WTW), Sunedison Inc (NYSE:SUNE), and Republic Airways Holdings Inc. (NASDAQ:RJET)

Feb 26, 2016 at 9:29 AM
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Stocks are headed for a higher open, with traders keeping a close eye on rising crude futures and the latest update on fourth-quarter gross domestic product (GDP). Among equities in focus are weight management firm Weight Watchers International, Inc. (NYSE:WTW), alternative energy company Sunedison Inc (NYSE:SUNE), and regional airline Republic Airways Holdings Inc. (NASDAQ:RJET).

  • Not even Oprah can save WTW, with the shares bracing for a 26% drop out of the gate, after the company reported a wider-than-expected loss in the fourth quarter and said revenue fell 21%. Additionally, the stock was smacked with a $3 price-target cut to $14 at Barclays. Heading into today's session, the stock was up 55% from its Feb. 8 year-to-date low of $10.03, and closed last night at $15.55. Meanwhile, short sellers have been raising the bearish stakes recently, with short interest jumping 9.1% in the latest reporting period. In fact, short interest accounts for more than two-thirds of Weight Watchers International, Inc.'s available float, or 6.2 times the average daily trading volume.

  • SUNE soared 36.5% yesterday to settle at $1.72 on well-received M&A news, and the stock looks ready to extend this momentum today -- up 33% in electronic trading. Helping boost the shares is news that a judge has refused to issue Appaloosa Management's injunction that would keep TerraForm Power Inc (NASDAQ:TERP) from purchasing Vivint Solar Inc (NYSE:VSLR) assets -- a hurdle in Sunedison Inc's proposed takeover of VSLR. Longer term, shares of SUNE are down 92.2% year-over-year. In the options pits, though, long calls have been popular, per the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 7.41 -- in the 85th annual percentile.

  • After closing Thursday at $3.44, RJET is set to drop 88% out of the gate -- into record-low territory -- on reports the company has filed for Chapter 11 bankruptcy protection. According to CEO Bryan Bedford, the filing "is a result of our loss of revenue during the past several quarters associated with grounding aircraft due to a lack of pilot resources, combined with the reality that our negotiating effort with key stakeholders shows no apparent prospect of a near term resolution." Short sellers have certainly been on the right side of Republic Airways Holdings Inc., which was already down 73% year-to-date heading into today's session. Short interest surged 23.9% in the last two reporting periods, and now accounts for more than 18% of the security's float.
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