The REIT Catching a Warren Buffett Boost This Morning

Pandora Media shares are rallying amid reports its CEO will step down

Jun 26, 2017 at 9:13 AM
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U.S. stock futures are up today, as oil prices eye another strong session. Among specific names on the move today are real estate investment trust Store Capital Corp (NYSE:STOR), streaming music service Pandora Media Inc (NYSE:P), and aluminum specialist Arconic Inc (NYSE:ARNC). Here's a quick look at what's moving shares of STOR, P, and ARNC.

STOR Set to Rally on Berkshire's Buy-In

Store Capital shares have popped more than 9% ahead of the bell, boosted by news that Berkshire Hathaway has invested $377 million in the company. A Berkshire subsidiary paid $20.25 per share for the 9.8% stake, compared to the equity's Friday close at $20.77. Today's pre-market surge has STOR stock set to break out above recent resistance at its 40-day moving average, which hasn't been surmounted on a daily closing basis since late April.

The new crop of STOR short sellers could be rattled by Berkshire's big stake, with short-covering potentially fueling today's gains. Short interest on Store Capital stock surged by more than 80% over the past two reporting periods, and now accounts for 5.4% of the stock's float.

Pandora Gains on Reports of CEO Shake-Up

Pandora Media has tacked on more than 3% in electronic trading, bolstered by a Re/Code report suggesting CEO Tim Westergren is set to step down. KeyBanc appears upbeat about P's prospects, despite reports that no replacement for Westergren is lined up; this morning, the brokerage firm upgraded Pandora shares to "sector weight."

P closed last Friday at $8.28, notching a rare close above resistance at its declining 20-day moving average. This trendline has highlighted the stock's year-to-date slump of 36.5% -- but many analysts remain firmly entrenched in Pandora's bullish camp. Currently, 13 brokerage firms still maintain a "buy" or better rating on the beaten-down stock.

Arconic Set to Slide on Report of Grenfell Culpability

Arconic stock is set to open on a loss of more than nearly 7%, after a weekend Reuters report said the company was aware that the panels it supplied for London's Grenfell Tower -- site of a deadly blaze last week -- were combustible. This plunge will set ARNC below support at its 150-day moving average, which had so far contained the stock's retreat from its February high above $30.

Going forward, that round $30 level could emerge as stiff resistance. Not only is it the site of ARNC's year-to-date high, it's also near the site of analysts' average 12-month price target of $29.17 -- which represents a premium of 13.5% to Friday's close at $25.54.
 

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