Stocks On the Move: Flotek Industries Inc, Sigma Designs Inc, and Celgene Corporation

Oil-and-gas stock Flotek Industries Inc (FTK), semiconductor stock Sigma Designs Inc (SIGM), and biotech concern Celgene Corporation (CELG) are making big moves in today's trading

Dec 7, 2016 at 3:33 PM
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U.S. stocks are higher ahead of tomorrow's European Central Bank (ECB) meeting. Among the equities sitting out the rally are oil-and-gas stock Flotek Industries Inc (NYSE:FTK), semiconductor stock Sigma Designs Inc (NASDAQ:SIGM), and biotech concern Celgene Corporation (NASDAQ:CELG). Here's a quick look at what's moving FTK, SIGM, and CELG.

  • FTK is down 15.7% at $11.06, after short seller FourWorld Capital issued a critical independent analysis of Flotek Industries Inc's fracking additive CnF. FTK is still up 126% since its January lows, but is on pace to close below its 50-week moving average for the first time since June. Although FTK is on the short-sale restricted (SSR) list today, a number of short sellers are likely cheering the stumble. While FTK's short interest is down 8.6% over the last two reporting periods, it still accounts for more than 25% of FTK's float, which would take 12.3 days of trading to cover, at FTK's average daily volume.

  • SIGM is trading 29.7% lower at $5.45 -- the worst Nasdaq performer -- after offering lackluster current-quarter guidance. Analysts have been quick to hop on the stock, with Needham downgrading SIGM to "hold" from "buy" and "dramatically" reducing forward estimates, while Craig Hallum, Benchmark, and Lake Street issued price-target cuts, to $10, $9.50, and $7, respectively. SIGM is on today's SSR list, and earlier touched a nearly two-year low of $5.20. Sigma Designs Inc's shares are down more than 13% year-to-date, and are on track to finish below their 160-day moving average for just the second time since July. Today's drop could trigger more downgrades, with 75% of covering analysts offering up "buy" or better ratings.
  • CELG is trading 4.1% lower at $112.57, as comments from Donald Trump slam the broader biotech sector today. In addition, Celgene Corporation announced it will not be pursuing phase 3 trials for a chemo-combo of its lung cancer drug Abraxane. Today's move has CELG giving up most of its post-election gains -- which sent the stock to annual highs -- and back in negative year-to-date territory, down 5.8% for 2016. Some option bulls may find themselves under water, with CELG's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 2.56 sitting in the 73rd percentile of its annual range, suggesting a stronger-than-usual bullish bias among option players.
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