Buzz Stocks: Marvell Technology Group Ltd., Dynavax Technologies Corporation, and Navistar International Corp

Today's stocks to watch in the news include Marvell Technology Group Ltd. (MRVL), Dynavax Technologies Corporation (DVAX), and Navistar International Corp (NAV)

Sep 6, 2016 at 9:30 AM
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U.S. stocks are set to open slightly higher this morning, with a raft of M&A developments in focus. Among specific equities in focus are microchip maker Marvell Technology Group Ltd. (NASDAQ:MRVL), biotech stock Dynavax Technologies Corporation (NASDAQ:DVAX), and truck manufacturer Navistar International Corp (NYSE:NAV).

  • MRVL reported better-than-expected earnings, but fell short on revenue. As a result, the stock is pointed 4.3% lower in pre-market trading, following last week's close at $13.01. Longer term, Marvell Technology Group Ltd. shares have been on fire, soaring 47.5% year-to-date. Yet, the brokerage crowd remains unconvinced. Eleven of 17 analysts rate MRVL stock a "hold" or worse, and the consensus 12-month price target of $13.32 is just a chip-shot from current trading levels.
  • DVAX has jumped 21.6% in electronic trading, after the company said over the weekend that the Prescription Drug User Fee Act (PDUFA) date of Dec. 15, 2016 for its hepatitis B vaccine remains unchanged. This is good news for shareholders, who watched the stock implode on Friday after the U.S. Food and Drug Administration (FDA) canceled a mid-November meeting to review its Biologics License Application (BLA). Specifically, Dynavax Technologies Corporation lost 31.6% last Friday to settle at $10.91, bringing its 2016 deficit to nearly 55%. Meanwhile, short sellers have been wagering on extended losses for the drug stock. One-fifth of DVAX's float is sold short, and it would take over two weeks to cover these bets, at the equity's average trading level.
  • Volkswagen Truck & Bus has agreed to take a 16.6% stake in NAV, paying $256 million, or $15.76 per share, for 16.2 million newly issued shares -- a 12% premium to Friday's close at $14.07. Volkswagen will also have the right to appoint two directors to Navistar International Corp's board. Given these developments, the truck maker's stock is poised to gap 40% higher out of the gate, and open at levels not explored in nearly a year. Another big move could be in store this Thursday, with the company slated to report earnings ahead of the bell. Assuming NAV takes off this morning, additional gains could be fueled as short sellers run for cover. Nearly 23% of the stock's float is dedicated to short interest, translating to 12 sessions' worth of pent-up buying power, at NAV's typical trading volume.

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