Buzz Stocks: Hertz Global Holdings Inc, Hatteras Financial Corp., and Valeant Pharmaceuticals Intl Inc

Today's stocks to watch in the news include Hertz Global Holdings Inc (NYSE:HTZ), Hatteras Financial Corp. (NYSE:HTS), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

Apr 11, 2016 at 9:57 AM
facebook X logo linkedin

Stocks are moving higher this morning, as first-quarter earnings season prepares to kick off. Meanwhile, among specific equities in focus are car rental stock Hertz Global Holdings Inc (NYSE:HTZ), real estate investment trust (REIT) Hatteras Financial Corp. (NYSE:HTS), and biotech stock Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

  • HTZ is down 5% this morning at $9.21, after the company warned that first-quarter earnings would likely disappoint. Disappoint is exactly what the stock has done in the past 12 months, losing well over half its value, while touching a six-year low of $6.95 on Feb. 11. Short sellers have been piling on amid this underperformance. For instance, short interest on Hertz Global Holdings Inc jumped by 22% in the most recent two-week reporting period. 

  • HTS is surging this morning, on news Annaly Capital Management, Inc. (NYSE:NLY) will buy the company for $1.5 billion -- or $15.85 per share. On the charts, HTS had been trending lower for almost three years, before bottoming at an all-time low of $10.54 in January. However, thanks to today's 10% M&A-related pop, the shares were last seen at $15.67. Short-term options traders, meanwhile, have shown a preference for puts over calls on Hatteras Financial Corp. The stock's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 4.00 indicates near-the-money put open interest quadruples call open interest in the front three-months' series of options. 

  • VRX is trading 1.4% lower at $33.20, following news the company's outgoing CEO Michael Pearson may be held in contempt by a Senate committee. VRX's technical woes have been well documented, with the shares losing roughly two-thirds of their value in 2016. Regardless, some analysts continue to back Valeant Pharmaceuticals Intl Inc, with five brokerage firms issuing a "strong buy" recommendation, while VRX's average 12-month price targets stands at almost two times current levels at $64.61. 
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!