Buzz Stocks: Tiffany & Co., Sarepta Therapeutics Inc, and Medivation Inc

Today's stocks to watch include Tiffany & Co. (TIF), Sarepta Therapeutics Inc (SRPT), and Medivation Inc (MDVN)

May 25, 2016 at 10:24 AM
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U.S. stocks are up, extending yesterday's triple-digit gains, as oil prices continue to rise and rate-hike fears are tempered. Among equities in focus today are luxury retailer Tiffany & Co. (NYSE:TIF), as well as biopharmaceutical stocks Sarepta Therapeutics Inc (NASDAQ:SRPT) and Medivation Inc (NASDAQ:MDVN)

  • TIF is down 1.7% at $62.75, after the company reported its sharpest sales drop since 2009, citing decreased foreign spending in the wake of a stronger dollar. Tiffany & Co. also issued lackluster guidance. The shares are down over 17% year-to-date, and now sits just above their three-year low hit in January. Ahead of earnings, bearish traders were hot on the luxury retailer's stock, with TIF's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 3.32 sitting higher than 94% of all other readings from the past 12 months.

  • SRPT has made huge gains of 21%, putting the shares at $22.32, after the Food and Drug Administration (FDA) delayed its highly anticipated ruling on SRPT's Duchenne muscular dystrophy drug, eteplirsen -- leaving the door open for possible approval. Options traders were growing increasingly skeptical ahead of the decision -- initially expected May 26 -- even as the stock recently toppled its 100-day moving average for the first time since January. Volatility expectations were also through the roof, as SRPT's Schaeffer's Volatility Index (SVI) stands at 416%, higher than any other reading from the past 12 months. Meanwhile, short sellers could be nervous today; 47% of Sarepta Therapeutics Inc's float is currently sold short. 

  • MDVN shares have erased early losses, last seen 0.5% higher at $62.21, with Bloomberg reporting that Celgene Corporation (NASDAQ:CELG) and Gilead Sciences, Inc. (NASDAQ:GILD) could be mulling Medivation bids. MDVN was initially lower on reports that French healthcare company Sanofi SA (ADR) (NYSE:SNY) is planning to oust MDVN's board of directors, after Medivation Inc turned down SNY's $9.3 billion hostile takeover bid. MDVN shares have doubled in value since hitting a two-year low in February, enjoying the support of the stock's 10-day moving average. MDVN's ISE/CBOE/PHLX 10-day put/call volume ratio currently sits in the 94th percentile of its annual range, suggesting a stronger-than-usual bearish appetite. Analysts seem confident in the biopharmaceutical stock, however, with 10 of 14 rating MDVN a "strong buy," and not a "sell" in sight.


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