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CarMax, FedEx Head In Opposite Directions After Earnings Beats

FedEx is trading lower, despite a handful of price-target hikes and solid earnings guidance

Managing Editor
Jun 21, 2017 at 10:27 AM
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U.S. stocks are bouncing back, as stabilizing oil prices are helping markets recover. Among specific names on the move today are used car stock CarMax, Inc (NYSE:KMX), delivery specialist FedEx Corporation (NYSE:FDX), and biotech Cara Therapeutics Inc (NASDAQ:CARA). Here's a quick look at what's moving shares of KMX, FDX, and CARA.

Upbeat Earnings Jump-Start CarMax Stock

CarMax stock is up 7% to trade at $62.80, after the used car company reported earnings per share of $1.13, beating consensus estimates of $0.98. It's been a hectic year for KMX stock, which hit an 18-month high of $69.11 on Feb 16, but has since backpedaled to a year-to-date loss of 2.5%.

Checking the stock's sentiment backdrop, it looks like short-covering activity could be fueling today's early post-earnings gains. Short interest accounts for 16.4% of KMX's float, or nearly 11 times the stock's average daily trading volume.

Solid Earnings, Price-Target Hikes Can't Boost FedEx Stock

FedEx stock is down 1.5% to trade at $206.21, despite an earnings report that beat analyst projections. In addition, FedEx received price target hikes from Deutsche Bank, BMO, Credit Suisse, and Baird. It's been a strong year for the delivery specialist, with FDX stock up 11% year-to-date, and having just reached a record high of $211.88 on June 16.

Today's lackluster reaction in FDX shares could be the result of overly upbeat expectations, judging by rampant bullish speculation in the weeks leading up to the FedEx earnings report. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows FDX stock with a 50-day call/put volume ratio of 1.16, which ranks in the 98th annual percentile.

Cara Therapeutics Stock Gains on Drug Trial Update

Cara Therapeutics stock is up 2.2% today at $18.05, after completing an interim assessment of its phase 3 trial of Cr845 for postoperative pain. It's been a banner year for CARA, which is up 94% year-to-date. The stock has pulled back from its 18-month high of $20.90, tagged on March 29, but CARA has lately found support at its 80-day moving average.

However, there still seems to be a large bearish contingent betting against Cara shares. Over 7 million shares are sold short, accounting for nearly 31% of the stock's total available float.

 

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