Buzz Stocks: Lennar Corporation, Chesapeake Energy Corporation, and Community Health Systems

Today's stocks to watch in the news include Lennar Corporation (LEN), Chesapeake Energy Corporation (CHK), and Community Health Systems (CYH)

by Kirra Fedyszyn

Published on Sep 20, 2016 at 9:18 AM
Updated on Sep 20, 2016 at 9:19 AM

U.S. stocks are set to open higher today as the Fed policy meeting kicks off. Among specific equities in focus today are home builder Lennar Corporation (NYSE:LEN), oil-and-gas stock Chesapeake Energy Corporation (NYSE:CHK), and hospital operator Community Health Systems (NYSE:CYH).

  • LEN is set to open 1.3% lower this morning, as a quarterly earnings and revenue beat are being overshadowed by a steeper-than-expected slip in housing starts for August, as well as a fresh "neutral" rating from Wedbush. At its Monday close of $45.09, the stock was down nearly 8% year-to-date, but it appears options traders have been eyeing a rally for Lennar Corporation. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 14.43 sits just 7 percentage points from a 12-month high.
  • CHK is down 2.8% ahead of the open on news activist investor Carl Icahn cut his stake in the company to 4.6% from 9.4%, citing "tax planning purposes." Chesapeake Energy Corporation has added a hefty 51% so far in 2016, as of Monday's finish at $6.81, and options traders have been upping the bullish ante. But optimism is harder to find outside of the options pits. Specifically, short interest on the stock is elevated, at 16.1% of its float, and 16 of 20 analysts currently rate CHK a "hold" or worse. 
  • CYH is 2.9% higher in pre-market trading after closing Monday at $11.09, on news the company is in talks with Apollo Global Management LLC (NYSE:APO) and other private equity firms to explore the potential sale of assets. Community Health Systems has given up 72% of its value year-over-year amid mounting corporate debt concerns, and has been pressured lower by resistance at its 120-day moving average. Unsurprisingly, expectations for the stock are low, with more than 35% of CYH's total float sold short. At the equity's average daily volumes, it would take more than seven sessions to cover all these bearish bets. 

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