Buzz Stocks: Wynn Resorts, Limited, AbbVie Inc, and Seres Therapeutics Inc

Today's stocks to watch in the news include Wynn Resorts, Limited (NASDAQ:WYNN), AbbVie Inc (NYSE:ABBV), and Seres Therapeutics Inc (NASDAQ:MCRB)

Jul 29, 2016 at 10:20 AM
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U.S. stocks are down after a couple of blue-chip earnings misses, and as traders react to weaker-than-expected preliminary gross domestic product (GDP) data. Among equities in focus today are casino stock Wynn Resorts, Limited (NASDAQ:WYNN), as well as biotechs AbbVie Inc (NYSE:ABBV) and Seres Therapeutics Inc (NASDAQ:MCRB).  

  • WYNN is down 7.6% at $96.75, despite reporting earnings that beat analyst expectations. Instead, traders are reacting to the casino's smaller-than-expected allocation of table permits for a new casino in Macau. This news led to a subsequent slew of bearish analyst notes, including a downgrade to "underperform" by CSLA. Nomura cut its rating on WYNN to "reduce" from "neutral," trimmed its price target to $83 from $92, and said "This paltry allocation is a clear message from Beijing that it is serious about Macau enforcing the table cap." Despite the drop, WYNN remains up over 50% year-to-date, although the shares have been running into resistance at the $104-$105 area. WYNN's Schaeffer's put/call open interest ratio (SOIR) of 0.54 sits at the very bottom of its 52-week range, suggesting short-term option players haven't been more call-skewed in the last 12 months.
  • ABBV is up 1.6% at $65.75, after another earnings beat and upwardly revised full-year forecast, citing strong drug sales, especially for its rheumatoid arthritis drug, Humira. This puts AbbVie Inc up nearly 10% since the beginning of 2016, and the shares are now flirting with year-to-date highs. Analysts remain skeptical of ABBV, however, with seven of 13 rating the shares a "hold" or worse, leaving plenty of room for potential upgrades to propel the shares even higher.
  • MCRB is down 76.2% at $8.53 -- a new all-time low – after its experimental drug, SER-109, failed to reach its main goal in a mid-stage study. Nevertheless, H.C. Wainwright subsequently began coverage on MCRB with a "buy" rating and optimistic price target of $50 -- a 486% premium to the stock's new low. MCRB now sits 75% lower year-to-date, and today finds itself on the short-sale restricted list. There are likely plenty of shorts cheering, though, as short interest represents nearly two-and-a-half weeks of pent-up buying demand, at MCRB's average daily volume. 

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