Buzz Stocks: Medivation Inc, Movado Group, Inc., and Peabody Energy Corporation

Today's stocks to watch include Medivation Inc (MDVN), Movado Group, Inc. (MOV), and Peabody Energy Corporation (BTU)

Mar 31, 2016 at 9:20 AM
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Stocks are signaling a muted start this morning, as traders are treading cautiously ahead of another round of Fed speeches and the end of the first quarter. Among the equities in focus today are drugmaker Medivation Inc (NASDAQ:MDVN), watch stock Movado Group, Inc. (NYSE:MOV), and coal concern Peabody Energy Corporation (NYSE:BTU)

  • MDVN is reportedly working with JPMorgan Chase & Co. (NYSE:JPM) to defend itself against takeover approaches, as the company has no plans to sell itself. This has the drug stock trading 13% higher pre-market. Longer term, however, Medivation Inc has shed nearly 23% year-to-date to sit at $37.39. On the sentiment front, option traders have been betting more downside for the shares, buying to open nearly two puts for every call during the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The resultant put/call volume ratio of 1.78 rests just 6 percentage points from an annual high. Meanwhile, one recent call seller could be shaking in his boots, with MDVN on the brink of a big rally. Separately, Credit Suisse upped its price target on the shares to $49 from $48.
  • MOV is bracing for a 4% drop out of the gate, as a weak forecast overshadows slightly better-than-expected earnings and a $50 million stock buyback plan. The firm also upped its quarterly dividend and announced the pending retirement of Vice Chairman and Chief Operating Officer Rick Cote. All in all, though, it's been a great year for the shares, which have added 18% in 2016 to trade at $30.34. That hasn't stopped short sellers from circling Movado Group, Inc. Roughly one-tenth of the stock's float is sold short, and it would take these bears over two weeks to cover their positions, at MOV's average trading levels.
  • BTU announced it will cut approximately 235 jobs at a mine in the Powder River Basin, just days after saying it's at risk for bankruptcy. Nonetheless, the stock is pointed 6.2% higher in electronic trading. Last night, the shares closed at $2.44, and have surrendered over two-thirds of their value year-to-date. Not surprisingly, analysts are tilted in a bearish direction when it comes to Peabody Energy Corporation. Specifically, nine of 10 brokerage firms have designated the stock a "hold" or worse -- including seven "strong sells."
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