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Hain Hammered After Earnings Reveal, While Qatar Boosts American Airlines Stock

Hain Celestial is trading lower after reporting earnings for the first time in over a year

Managing Editor
Jun 22, 2017 at 10:30 AM
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U.S. stocks are up as oil prices start to rebound. Among specific names on the move today are organic food company Hain Celestial Group Inc (NASDAQ:HAIN), biopharmaceutical company Kamada Ltd (NASDAQ:KMDA), and transportation giant American Airlines Group Inc (NASDAQ:AAL). Here's a quick look at what's moving shares of HAIN, KMDA, and AAL.

Hain Stock Hits a New Low After Earnings

Hain Celestial stock is down 2% to trade at $32.54 -- and earlier hit a new four-year low of $32.20 -- after the organic food company's earnings guidance fell short of expectations. This is more of the same for HAIN stock, which has shed 16.6% year-to-date. The shares have underperformed the broader S&P 500 Index (SPX) by nearly 15 percentage points during the past three months.

Accordingly, analysts are skeptical of Hain Celestial -- whose earnings report today was its first in over a year due to an accounting review. Of the 13 brokerages covering HAIN, eight rate it a "hold," and one has deemed the stock a "strong sell."

Withdrawn MAA Sends Kamada Stock Stumbling

Kamada stock is down 25% at $5.40, as the biopharma firm announced it has withdrawn the European Marketing Authorization Application (MAA) for its inhaled antitrypsin drug after determining that regulators require more data. Today's bearish gap has abruptly ended KMDA's nearly year-long uptrend along support at its 80-day moving average, with the stock now at risk of falling into negative ground on a year-to-date basis.

Qatar Stake Fuels American Airlines

American Airlines stock is up 3% to trade at $49.89, after Qatar Airways expressed its intent to acquire a 10% stake in the airline -- worth about $808 million -- in the open market. Such an investment would require board approval. AAL stock is currently up 64% year-over-year, and hit a two-year high of $51.95 on June 9.

Now could be the time to jump in on short-term AAL options. AAL's Schaeffer's Volatility Index (SVI) of  29% stands higher than just 12% of all other readings from the past year, implying that near-term options premiums are pricing in relatively low volatility expectations.

 

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