Buzz Stocks: Fastenal Company, Eagle Bulk Shipping Inc, and Horizon Pharma PLC

Today's stocks to watch in the news include Fastenal Company (NASDAQ:FAST), Eagle Bulk Shipping Inc (NASDAQ:EGLE), and Horizon Pharma PLC (NASDAQ:HZNP)

Apr 12, 2016 at 9:30 AM
facebook twitter linkedin

U.S. stocks are set to start the session modestly higher, rising in step with crude oil prices. Meanwhile, among specific equities in focus are construction equipment supplier Fastenal Company (NASDAQ:FAST), shipping interest Eagle Bulk Shipping Inc (NASDAQ:EGLE), and biotech stock Horizon Pharma PLC (NASDAQ:HZNP).

  • FAST is set to drop 3.6% at the open after reporting first-quarter earnings just shy of estimates. Fastenal Company was up 15% year-to-date heading into this morning's report, closing at $46.94 on Monday. The shares hit an annual high of $49.99 in late March before pulling back to their 40-day moving average -- a recently supportive trendline that will likely be tested in today's trading. Despite the stock's recent outperformance, though, sentiment has been tilted against FAST. Out of 15 analysts providing coverage, 13 call the equity a "hold" or "strong sell." And FAST's Schaeffer's put/call open interest ratio (SOIR) of 1.95 shows puts nearly doubling calls among options expiring in three months or less. Moreover, this ratio ranks in the 85th percentile of its 12-month range.

  • EGLE is up 8.7% in pre-market trading after GoldenTree Asset Management reported an 18.3% stake in the company. The stock has been spiraling over the past year, hitting a record low of $0.30 on April 4. What's more, based on Eagle Bulk Shipping Inc's Monday close of $0.91, the shares had given up nearly three-fourths of their value so far in 2016. No analysts are following EGLE at the moment, but some bearish traders have recently cashed in their winning bets. Short interest on the security fell by about 25% during the latest two-week reporting period, and now accounts for 7.5% of EGLE's total float -- less than two sessions' worth of trading, at the stock's average daily volume.

  • HZNP is poised to plummet 18.2% at the bell after confirming disappointing guidance for the full 2016 fiscal year. The shares were rejected by their 140-day moving average late last week and closed slightly lower on Monday, at $18.22. Year-to-date, the shares of HZNP have lost nearly 16%. Still, six out of seven analysts call Horizon Pharma PLC a "strong buy." And option traders have turned distinctly bullish of late -- at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), long calls on HZNP outnumbered long puts nearly 6-to-1 over the past two weeks. The resulting 10-day call/put volume ratio of 5.84 sits higher than 76% of all readings in the past year.
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