GNC, SunPower, Kate Spade News Today

GNC Holdings Inc (GNC), SunPower Corporation (SPWR), and Kate Space & Co (KATE) are making headlines today

Feb 16, 2017 at 9:58 AM
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U.S. stocks are higher as traders digest the latest round of earnings, economic data, and Fed chatter. Among specific equities in focus today are nutrition retailer GNC Holdings Inc (NYSE:GNC), solar power company SunPower Corporation (NASDAQ:SPWR), and retailer Kate Spade & Co (NYSE:KATE). Here's a quick look at what's driving GNC, SPWR, and KATE shares.

GNC Falls On Earnings Miss

GNC is down 13.9% at $7.19 -- and just off a record low of $6.95 -- after the nutrition retailer delivered a disappointing earnings report. GNC Holdings Inc shares have stair-stepped more than 74% lower over the last 12 months, with their 80-day moving average containing rebound attempts. Options traders are likely cheering today's steep drop, with GNC's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing 2.21 puts bought to open for every call over the last 10 weeks -- a reading that sits just 2 percentage points from an annual peak.

SunPower Cools After Earnings, Analysts

SPWR is down 3.7% at $6.96, after the solar power company's wider-than-expected quarterly loss and warning of continued "intensity of competition." Credit Suisse cut its price target to $8 from $9, Deutsche Bank cut its price target to $6 from $8, and JMP Securities slashed its target by $1 to $5 -- in four-year low territory. SPWR, which is down 71% year-over-year, has been churning in the $6-$8 range since late October. Option bulls may be sweating today's downturn, with SunPower Corporation's 50-day call/put volume ratio at the ISE/CBOE/PHLX showing 4.61 calls bought to open for every put over the last 10 weeks, a reading that sits higher than 97% of all other readings taken in the last 12 months.

Kate Spade Looking At "Strategic Alternatives"

KATE -- the center of recent buyout rumors -- is up 10.6% at $21.75, after the company announced it is considering "strategic alternatives."  Kate Spade & Co also delivered an earnings win, and the stock is now up 55% since its late-December lows, though the shares are now staring up at the $22 level that blocked a July rally attempt, and is home to a 61.8% Fibonacci retracement of KATE's 2016 highs and lows. Short sellers may find themselves increasingly under water, with short interest up a whopping 130% in the last two reporting periods, and with shorted shares now accounting for 8% of KATE's float, which would take 3.3 days to cover, at KATE's average daily volume.

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