Sirius XM Can't Capitalize on Alexa, While Lipocine Shorts Shrug Off Drug Data

SIRI is holding steady above its 80-day after creating a double top on the charts earlier this month

Managing Editor
Jun 20, 2017 at 10:41 AM
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U.S. stocks are trading slightly lower this morning, after a strong performance yesterday. Among specific names on the move today are homebuilder Lennar Corporation (NYSE:LEN), satellite radio stock Sirius XM Holdings Inc. (NASDAQ:SIRI), and drugmaker Lipocine Inc (NASDAQ:LPCN). Here's a quick look at what's moving shares of LEN, SIRI, and LPCN.

Lennar Stock Jumps After Strong Profit and Guidance

Lennar stock is up 5% to trade at $55.23 -- near a new two-year high -- after the company's earnings report exceeded analysts' expectations. Today's rally is just more of the same for the homebuilder stock, which is up 28% year-to-date, and hit its previous annual high of $54.84 as recently as June 14. Since late 2016, the shares have been guided higher by their 50-day and 80-day moving averages.

Given the strong price action, it's no surprise to see analysts are upbeat on Lennar. Of the 12 brokerages covering LEN stock, seven rate it a "strong buy" or "buy."

Sirius XM Loses Pre-Market Momentum on Alexa News

Sirius XM stock is flat today at $5.24, with the stock unable to hold its pre-market gains following news that Alexa, Amazon's digital personal assistant, can now stream over 200 channels of SiriusXM satellite radio. SIRI stock has gained 18% year-to-date, but has lost some momentum since double-topping around $5.50 at the beginning of June. The stock's ensuing pullback has so far been supported by its 80-day moving average.

The options market isn't pricing in any big moves for Sirius stock anytime soon. SIRI has a Schaeffer's Volatility Index (SVI) of 22%, which ranks in the 7th annual percentile. This indicates that short-term options are pricing in significantly lower-than-usual volatility expectations.  

Lipocine Quickly Pares Post-Study Stock Gains

Lipocine stock is up 7.4% to trade at $4.32, after the company reported positive top-line results for LPCN 1021, its testosterone drug. Right out of the gate, LPCN rallied to an eight-month high of $5.14 -- near the site of its descending 320-day moving average -- but the stock has since pared those early gains considerably. This suggests the $4.50 level, site of the equity's year-to-date closing high, will continue to act as a technical ceiling.

Based on LPCN stock's rapid retreat from its morning highs today, it seems as though the shorts are firmly in control of this name. Short interest rose by 9% in the most recent reporting period to account for 13.3% of the security's float, or 10.8 times LPCN's average daily trading volume.

 

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