Buzz Stocks: Anacor Pharmaceuticals Inc, Yahoo! Inc., and Trevena Inc

Today's stocks to watch include Anacor Pharmaceuticals Inc (ANAC), Yahoo! Inc. (YHOO), and Trevena Inc (TRVN)

by Celeste Taylor

Published on May 16, 2016 at 10:38 AM
Updated on Jun 24, 2020 at 10:16 AM

U.S. stocks are up, shaking off pre-market weakness, thanks to a bump in oil prices and a much-needed Apple Inc. (AAPL) boost inspired by Warren Buffett. Among equities in focus today are biopharmaceutical company Anacor Pharmaceuticals Inc (NASDAQ:ANAC), tech stock Yahoo! Inc. (NASDAQ:YHOO), and drugmaker Trevena Inc (NASDAQ:TRVN).

  • ANAC is up an impressive 54.5% at $98.90, on news the biopharmaceutical company will be purchased by Pfizer Inc. (NYSE:PFE) for $5.2 billion, or $99.25 per share. This news comes just weeks after the cancellation of a long-anticipated Pfizer Inc and Allergan plc Ordinary Shares (NYSE:AGN) merger. PFE stated that the "acquisition represents an attractive opportunity" and that Anacor will be a "strong fit" for the Pfizer family. Prior to today, Anacor Pharmaceutical Inc shares had fallen by nearly 60% since hitting an all-time high in July, with the stock closing Friday at $64.03. Plenty of option bears are likely kicking rocks today, with the stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 1.11 sitting in the 91st percentile of its annual range.

  • YHOO is trading at $37.27, up 2.3%, after Warren Buffett said Berkshire Hathaway Inc. (NYSE:BRK.A) would consider helping to fund billionaire Dan Gilbert's bid for YHOO. Though Buffett stated he has no interest in being an equity partner, he said he is "an enormous admirer of Dan" -- chairman of Quicken Loans and Cleveland Cavaliers owner -- and "would be a possible financing help" for a deal between YHOO and Gilbert. YHOO has recovered over 42% after hitting a year-to-date low in February, amid a surge of potential suitors, and short interest in the stock is down 19.6% over the last two reporting periods. Near-term options traders have been hot on calls, with Yahoo! Inc.'s Schaeffer's put/call open interest ratio (SOIR) sitting lower than 98% of all other readings from the past year, at 0.29.

  • TRVN is down 8.1% at $6.27 -- and exploring year-to-date lows -- after some ugly drug data. The pharmaceutical company announced that TRV027, its potential acute heart failure drug, will be shelved after it failed to beat a placebo in Phase 2 trials. As a result, Jefferies cut its price target to $11 from $13. Trevena Inc shares have given up more than half their value since hitting an all-time high in September, when the firm announced promising results for a post-surgery pain treatment drug. After this latest news, options traders are likely feeling the heat, as investors have bought to open nearly 13 calls for every put option in the past 10 days, despite TRVN underperforming the greater S&P 500 Index (SPX) by 13.7 percentage points over the last 20 sessions. 

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter