Brookdale Shares Bounce as SeaWorld Suitor Eyes Possible Buyout

Nike is in the EU's crosshairs, while Brookdale lands a high-profile suitor

Managing Editor
Jun 14, 2017 at 10:29 AM
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U.S. stocks are trading higher, ahead of the Fed policy decision on interest rates. Among specific names on the move today are healthcare stock Brookdale Senior Living, Inc (NYSE:BKD), drug stock Aldeyra Therapeutics Inc (NASDAQ:ALDX) and athletic apparel stock Nike Inc (NYSE:NKE). Here's a quick look at what's moving shares of BKD, ALDX, and NKE.

Potential Chinese Buyer Has BKD Stock Soaring

BKD stock is up 10% to trade at $15.51 today, after Reuters reported that Zhonghong Zhuoye Group -- the Chinese real estate and leisure group that recently purchased a SeaWorld stake -- is in talks to acquire the senior care company. Negotiations are reportedly underway, with Zhonghong rumored to have made an initial offer of around $3 billion.

BKD stock has tumbled more than 61% from its April 2015 high of $39.89, but today's rally has the shares on pace to close above their 320-day moving average for the first time in roughly two years. Options buyers seem enthusiastic about the prospects for a bid -- already today, 901 calls and puts have changed hands on Brookdale, roughly doubling the stock's expected intraday volume.

Ugly Drug Data Causes ALDX Stock To Slide

ALDX stock is reeling today, down 15% to trade at $4.34, after mid-stage trial data for ADX-102 showed the eye drug falling short of the study's primary goal. The bad news is aggravating an already-ugly situation on the charts for ALDX -- the stock's recovery from its annual low of $3.80 on May 9 was just rejected by resistance at its 200-day moving average.

The shares are now down about 19% year-to-date, and steady pressure from the shorts isn't helping Aldeyra's case. Short interest on the stock ramped up by more than 60% in the last two reporting periods, and a continuation of this shorting trend could keep ALDX on its heels.

NKE Stock Under EU Microscope

NKE, up 0.2% at $54.43, is facing an EU probe over its e-commerce practices and sales terms. More specifically, European Competition Commissioner Margrethe Vestager said the regulatory body is looking into the "licensing and distribution practices" of Nike as part of a broader probe that also includes Sanrio and Universal Studios.

NKE stock has managed a gain of nearly 7% year-to-date, falling just shy of the approximately 8% gain racked up by the broader Dow. The stock boasts a 50-day call/put volume ratio of 1.85, based on buy-to-open volume from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the bullishly slanted 98th percentile of its annual range.

Analysts, however, are less enthusiastic. Of the 28 brokerages covering Nike shares, nearly half rate it a "hold" or "sell."


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