Buzz Stocks: Allergan plc Ordinary Shares, Constellation Brands, Inc., and Amazon.com, Inc.

Today's stocks to watch in the news include Allergan plc Ordinary Shares (NYSE:AGN), Constellation Brands, Inc. (NYSE:STZ), and Amazon.com, Inc. (NASDAQ:AMZN)

by Karee Venema

Published on Apr 6, 2016 at 9:53 AM
Updated on Jun 24, 2020 at 10:16 AM

Stocks are higher at the open, as oil prices rebound. Meanwhile, among specific equities in focus are drugmaker Allergan plc Ordinary Shares (NYSE:AGN), alcoholic beverage firm Constellation Brands, Inc. (NYSE:STZ), and e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN).

  • AGN and Pfizer Inc. (NYSE:PFE) have officially called off their $160 billion merger, following the U.S. Treasury Department's new set of rules aimed at curbing corporate tax inversions. Analysts were quick to weigh in amid news of the dead deal, with Mizuho slashing its rating on AGN to "neutral" from "buy" and its price target to $250 from $330. The stock also received price-target cuts from Nomura (to $330) and Leerink (to $272).

    Despite these bearish notes, the shares of Allergan plc Ordinary Shares are up 12.5% out of the gate to $242.50, after plunging 14.8% yesterday -- and hitting a new annual low of $226.43. Should the shares resume Tuesday's retreat, a fresh round of bearish brokerage notes could be on the horizon. As of last night's close, all but one of the 13 analysts covering AGN maintained a "buy" or better rating.

  • STZ is up 4.4% at the open to $158.05 -- record-high territory -- after the company reported better-than-expected earnings and offered up an encouraging forecast. Additionally, Constellation Brands, Inc. said it will buy The Prisoner Wine Company's brands from Huneeus Vintners for roughly $285 million in cash. Today's price move is just more of the same for a stock that's up 34% year-over-year. Option traders, meanwhile, have initiated long calls over puts at a faster-than-usual clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), STZ's 10-day call/put volume ratio of 1.53 ranks in the 64th annual percentile.

  • AMZN is making a string of headlines today, including speculation that the newest Kindle -- expected to be unveiled next week -- will feature a rechargeable case. Additionally, the firm is reportedly in talks to take a minority stake in German mapping service HERE -- along with fellow tech titan Microsoft Corporation (NASDAQ:MSFT) -- and, per Bloomberg, has purchased artificial-intelligence startup Orbeus Inc.

    Against this busy backdrop, shares of Amazon.com, Inc. are up 1.4% in early trading to $594.36. Longer term, the stock has tacked on 25% since bottoming at a year-to-date low of $474 on Feb. 9. Those purchasing options on the stock have been getting a relative deal, too. AMZN's Schaeffer's Volatility Index (SVI) of 26% sits lower than 80% of all comparable readings taken in the past year, meaning the stock's short-term options are pricing in low volatility expectations at the moment.
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