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 twitter 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!
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners