Buzz Stocks: Cirrus Logic, Inc., Baker Hughes Incorporated, and Novo Nordisk A/S

Today's stocks to watch in the news include Cirrus Logic, Inc. (NASDAQ:CRUS), Baker Hughes Incorporated (NYSE:BHI), and Novo Nordisk A/S (ADR) (NYSE:NVO)

by Karee Venema

Published on Oct 28, 2016 at 9:49 AM

U.S. stocks are higher this morning, as traders parse the latest gross domestic product (GDP) data and a fresh batch of corporate earnings. Among specific equities in focus are Apple Inc. (NASDAQ:AAPL) supplier Cirrus Logic, Inc. (NASDAQ:CRUS), oil stock Baker Hughes Incorporated (NYSE:BHI), and healthcare firm Novo Nordisk A/S (ADR) (NYSE:NVO). Here's a quick look at what's driving the action in CRUS, BHI, and NVO today.

  • CRUS is up nearly 7% out of the gate at $55.20, after the integrated circuit specialist posted better-than-expected fiscal second-quarter earnings. The quarterly results were met with a round of applause from analysts, too, with no fewer than five brokerage firms lifting their price targets -- including Canaccord Genuity to $70 from $65, in record-high territory. Today's positive price action has CRUS stock at the high end of its recent trading range, and nearing its Sept. 20 all-time peak at $58.08. Cirrus Logic, Inc. could get an additional boost, should short sellers start to capitulate to this upward price movement. The 3.8 million CRUS shares that are sold short represent nearly a week's worth of buying power, at the security's average pace of trading.

  • BHI has surged 5.2% to trade at $57.40 -- and earlier touched an annual high of $57.92 -- on news the company is in talks over a potential partnership with General Electric Company (NYSE:GE), although an outright takeover of Baker Hughes Incorporated is reportedly not part of the discussions. Longer term, BHI stock has put in an impressive performance, rallying more than 50% off its early April lows near $38. In the options pits, traders have shown a preference for long calls over puts in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BHI's 10-day call/put volume ratio of 2.03 ranks in the elevated 73rd annual percentile.

  • Shares of NVO have plunged 14.6%, last seen at $34.98 -- after hitting a two-year low of $34.91 -- after the drugmaker slashed its 2017 forecast and lowered the high end of its 2016 sales guidance. Despite a third-quarter profit beat, Novo Nordisk A/S said it "no longer deems it achievable to reach" its longer-term goals. NVO stock has been spiraling in recent months, shedding 39% since its Aug. 1 peak at $57.41. Short sellers have been targeting the equity for more losses, too. However, although short interest on NVO spiked 77.4% in the two most recent reporting periods, these bearish bets account for just 0.2% of the stock's available float. The shares could meet more selling pressure if shorts continue to climb on board -- though NVO is currently short-sale restricted.
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