Buzz Stocks: Alcoa Inc, Fastenal Company, and SAGE Therapeutics Inc

Today's stocks to watch in the news include Alcoa Inc (NYSE:AA), Fastenal Company (NASDAQ:FAST), and SAGE Therapeutics Inc (NASDAQ:SAGE)

Jul 12, 2016 at 10:21 AM
facebook twitter linkedin


U.S. stocks are trekking deeper into uncharted territory, following a strong start to second-quarter earnings season. Among equities in focus today are aluminum stock Alcoa Inc (NYSE:AA), construction equipment supplier Fastenal Company (NASDAQ:FAST), and biotech SAGE Therapeutics Inc (NASDAQ:SAGE).

  • AA is up 3% at $10.44, after the company reported better-than-anticipated second-quarter earnings. The shares of Alcoa Inc also received $1 price-target hikes from J.P. Morgan Securities and Stifel, to $10 and $13, respectively. Today's surge has Alcoa breaking out above $10.20, a level that has largely contained the shares since late last year. What's more, AA stock is now up 6% year-to-date. On the sentiment front, short interest fell 1.4% in the most recent reporting period, but these bearish bets still make up 10.1% of AA's float, which would take about 7.4 days to cover, at the equity's average daily volume.
  • FAST is down 3.5% at $43.78, after the company reported second-quarter earnings that missed the mark. Nevertheless, the shares of Fastenal Company are still up 7.3% year-to-date, and appear to have found a foothold in the $43.50 region -- a level that supported FAST in mid-June. Short sellers, meanwhile, have been jumping ship, with short interest down 3.4% in the last two reporting periods. However, 11.6% of FAST's float is still sold short -- or 14.6 times FAST's average daily trading volume -- leaving ample sideline cash to help boost the shares, should they resume their longer-term uptrend.
  • SAGE is up 35.8% at $45.71, after its postpartum depression drug, SAGE-547, met its mid-stage study goal. Despite this meteoric rise, SAGE has struggled over the long term, down 22% year-to-date -- and today's surge is running out of steam near the 320-day moving average, a trendline not conquered on a daily closing basis since Jan. 5. In the options pits, SAGE Therapeutic Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.57 sits at the very bottom of its annual range. In other words, short-term option players are the most call-biased they've been in the past 12 months.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners