Buzz Stocks: Baker Hughes Incorporated, ACADIA Pharmaceuticals Inc., and J C Penney Company Inc

Today's stocks to watch include Baker Hughes Incorporated (BHI), ACADIA Pharmaceuticals Inc. (ACAD), and J C Penney Company Inc (JCP)

by Celeste Taylor

Published on May 2, 2016 at 11:19 AM
Updated on Jun 24, 2020 at 10:16 AM

U.S. stocks are up to start the month, after the latest Institute for Supply Management (ISM) manufacturing index showed factory activity continued to expand. Among equities in focus today are oilfield services provider Baker Hughes Incorporated (NYSE:BHI), biopharmaceutical company ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), and retailer J C Penney Company Inc (NYSE:JCP).

  • BHI shares are down 0.6% at $48.07, after the company confirmed that its proposed $28 billion merger with Halliburton Company (NYSE:HAL) has been called off. Longer term, Baker Hughes International shares have been steadily climbing since reaching a three-year low of $37.58 in mid-January, but have recently run into trouble at their 200-day moving average. Meanwhile, bearish betting among options traders has been on the rise, with BHI's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 3.52 sitting in the 73rd percentile of its annual range. Outside of the options pits, though, BHI's short interest has fallen 16.2% over the last two reporting periods, and now accounts for only 1.3% of the stock's available float.
  • ACAD is down 0.2% to $32.22, after the company received approval from the Food and Drug Administration (FDA) for its new drug, Nuplazid. While this is the first drug of its kind to treat psychosis linked to Parkinson's in the U.S., its approval is contingent upon the inclusion of a strict black-box warning. Technically, ACADIA Pharmaceuticals Inc. shares have climbed 94% since hitting an annual low of $16.64 on Feb. 9. Analysts are upbeat, too, and over the weekend, Cowen and Company raised its price target on ACAD to $42 from $36. However, some traders are skeptical, with short interest up 17.7% over the last two reporting periods. These bearish bets now account 25.2% of ACAD's float, which would take over a week to cover, at the normal pace of trading. 
  • JCP is up 1.6% % to $9.43, bringing its rally off its Jan. 20 annual low of $6.00 to 57.7%. Today's positive price action is due in part to an optimistic article in Barron's, which waxed optimistic on the company's turnaround efforts, and said the stock could double in price over the next three years. On the sentiment front, options bears have been especially active of late. J C Penney Company Inc's 10-day ISE/CBOE/PHLX put/call volume ratio currently sits at 3.60 -- in the 100th percentile of its annual range.

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