Buzz Stocks: Transocean LTD, Arrowhead Pharmaceuticals Inc, and Intra-Cellular Therapies Inc

Today's stocks to watch in the news include Transocean LTD (NYSE:RIG), Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR), and Intra-Cellular Therapies Inc (NASDAQ:ITCI)

by Josh Selway

Published on Sep 29, 2016 at 10:00 AM

U.S. stocks are trading lower today, paring some of yesterday's oil-related gains. Among specific equities in focus are drilling stock Transocean LTD (NYSE:RIG), along with drugmakers Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) and Intra-Cellular Therapies Inc (NASDAQ:ITCI).

  • RIG is up 2.7% this morning at $10.29, shrugging off news that activist investor Carl Icahn cut his stake in the stock from 5.9% to 1.5%. Icahn cited "tax planning purposes" for the move -- reasoning he's used for similar decisions in the recent past. Today's surge is giving shareholders a reprieve, as the stock is down 17% year-to-date, despite the firm's "rock solid" balance sheet. Elsewhere, most of Wall Street is bearish on Transocean LTD, with just two of 21 brokerage firms recommending that investors buy the stock. 

  • ARWR is booming this morning, up 11% at $7.82, after the company announced two new cardiovascular collaborations with fellow biotech Amgen, Inc. (NASDAQ:AMGN). As part of the agreement, Arrowhead Pharmaceuticals Inc will receive $56.5 million up front, and could potentially bank up to $617 million in additional milestone and equity payments down the road -- on top of any royalties. Brokerage firm RBC has since chimed in with a price-target hike to $12 from $9, and ARWR stock earlier approached annual-high territory, which is bad news for short sellers. Currently, more than three weeks' worth of buying power is controlled by short sellers, going by the stock's average daily volumes, meaning there's ample sideline cash available to fuel a short-covering rally
  • ITCI is collapsing today in light of disappointing trial results for a schizophrenia drug the firm is developing. The stock was last seen 63.5% lower at $15.45, and hit an intraday low of $14.88 -- territory not seen since December 2014. What's more, analysts are slashing their outlooks. SunTrust Robinson was one of at least four brokerage firms to lower its price target on the stock, to $15 from $60, and downgraded its rating to "neutral" from "buy," saying positive data from earlier drug studies "may not be sufficient to support marketing application submission." JMP Securities also lowered its opinion of Intra-Cellular Therapies Inc to "market perform" from "market outperform." And more downgrades could be forthcoming, since every analyst coming into today considered ITCI a "strong buy." 

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