Buzz Stocks: General Motors Company, Under Armour Inc, and Sarepta Therapeutics Inc

Today's stocks to watch include General Motors Company (NYSE:GM), Under Armour Inc (NYSE:UA), and Sarepta Therapeutics Inc (NASDAQ:SRPT)

Apr 21, 2016 at 10:09 AM
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U.S. stocks are attempting gains this morning, after jobless claims fell to a 42-year low. Among equities in focus today are carmaker General Motors Company (NYSE:GM), athletic apparel retailer Under Armour Inc (NYSE:UA), and biotech stock Sarepta Therapeutics Inc (NASDAQ:SRPT).

  • GM is 2.8% higher at $33.09, after beating analysts' predictions for first-quarter earnings. The company saw its profits more than double from the same period last year, thanks to solid domestic truck sales and improving European operations. The shares are now looking to overtake their 320-day moving average for the first time in 2016, and General Motors Company option bears could be sweating on the upbeat news. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GM's 50-day put/call volume ratio of 0.94 sits higher than 97% of all readings in the past year.
  • After reporting earnings above expectations on the Street -- helped by strong demand for its Stephen Curry shoe line -- and raising its full-year outlook, UA has soared 7.2% to $47.14. Moreover, Under Armour Inc sliced through the $44 area that's been blocking the shares' progress since late January, and is on pace to close atop its 200-day moving average for the first time since November. Short sellers may be heading for the exits if the rally continues -- nearly 15% of the stock's available float is still wrapped up in these bearish bets, accounting for 11 sessions' worth of trading, at UA's average daily pace.
  • SRPT has plummeted 38% to $12.22, after comments from the U.S. Food and Drug Administration (FDA) suggested the company's muscular dystrophy treatment is unlikely to be approved -- essentially echoing its view from January. Sarepta Therapeutics Inc has been awaiting a decision on the drug for months, and expects the final word in late May. With today's fall, the equity has given up 68% in 2016, and analysts don't appear to have high hopes. At present, seven out of 12 brokerage firms call SRPT a "hold" or "strong sell." Plus, option bears have continued to pile on, with the stock's 10-day put/call volume ratio on the ISE, CBOE, and PHLX rising to 0.69 -- in the 90th annual percentile. And with the stock's Schaeffer's Volatility Index (SVI) still parked at a 12-month high, these option buyers are paying hefty premiums for their bets.
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