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)

Oct 28, 2016 at 9:49 AM
facebook X logo linkedin

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.
Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!