GME, GRUB, and MBLY are among the stocks on the move today
Despite earnings season getting underway, U.S. stocks have generally remained in a holding pattern this morning. Among specific equities in focus today are video game retailer GameStop Corp. (NYSE:GME), food ordering platform GrubHub Inc (NYSE:GRUB), and tech stock Mobileye NV (NYSE:MBLY). Here's a quick look at what's moving GME, GRUB, and MBLY.
- GME has fallen 8.5% to trade at $22.61, after the retailer reported disappointing holiday sales and lowered its same-store sales guidance. The stock is now on track for its lowest close in roughly two months, after its December rally failed to clear the descending 100-day moving average. Today's collapse should be a welcome sight for option bears. During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GameStop Corp. traders have bought to open 6.01 puts for every call -- a ratio outranking 99% of comparable readings from the past year.
- GRUB is up 3.3% at $38.61, boosted by an upgrade to "overweight" from "equal weight" at Morgan Stanley -- which also raised its price target to $44 from $36 -- citing the potential for higher profits on a growing restaurant selection and new users. The stock is trending toward a fourth straight daily victory, too, and if the shares can clear their 100-day trendline, they could be off to the races. A short-squeeze situation could add more fuel to GrubHub Inc's fire. Over 16% of the stock's float is sold short, which would take two weeks to cover, at GRUB's average daily trading volume.
- MBLY has advanced 2.4% to hover near $41.81, after Jefferies started coverage with a "buy" rating and a $52 price target -- territory not explored since October 2015. The stock has bounded sharply higher since putting in a late-December bottom south of $34. Mobileye NV shares could further benefit as short sellers unwind their underwater positions. The stock's short-interest ratio is 7.4, meaning it would take well over a week for shorts to cover, based on MBLY's usual trading pace.
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