AMC Entertainment stock is exploring annual-low territory
U.S. stocks are slightly higher this afternoon, with markets building off the record highs of last week. Electric car name Tesla Inc (NASDAQ:TSLA), package delivery giant FedEx Corporation (NYSE:FDX), and movie theater stock AMC Entertainment Holdings (NASDAQ:AMC) are all lower today. Here's a quick look at what's moving shares of TSLA, FDX, and AMC.
Tesla Stock Lower On Musk Comments, Autopilot Crash
Tesla stock is 2.6% lower today, trading at $319.01, after CEO Elon Musk on Saturday said that Tesla's stock price is “is higher than we have the right to deserve.” Furthermore, TSLA stock fell as low as $313.45 earlier on reports of an Autopilot-related crash in Minnesota over the weekend, though the driver allegedly denied that Autopilot was at fault. Tesla stock touched an all-time high of $386.99 on June 23, but has since pulled back beneath its 10-day moving average, and briefly explored bear-market territory. However, for the year, Tesla stock has added 50%.
Options traders continue to target calls, despite TSLA's recent sluggish movement. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows TSLA with a 50-day call/put volume ratio of 1.18, which ranks in the 94th percentile of its annual range.
FedEx Stock Dips After Earnings Warning
FedEx stock is down 2% to trade at $215.08, after the shipping giant warned that the cyber attack from a month ago that disrupted its TNT Express unit will hurt the company's full-year results. This is a bump in the road for FDX stock, which notched a record high of $219.99 on July 10, and managed a record closing high on Friday. Today's drop has FedEx shares set to end beneath their 20-day moving average for the first time since May.
In the options pit, traders have been flocking to FDX calls during the last 10 weeks. ISE/CBOE/PHLX data shows FDX with a 50-day call/put volume ratio of 1.22 -- an annual high, which means calls have been bought to open over puts at the fastest pace in over a year.
Wanda Drama, Barron's Sink AMC Stock
AMC stock is reeling, down 9% to trade at $19.75 -- and just off an annual low of $19.65 -- after Chinese regulators blocked funding for Dalian Wanda's overseas deals -- two of which involve AMC Entertainment. Adding salt to the proverbial wound, Barron's over the weekend said movie-theater stocks (subscription required) "may not have a happy ending," considering studios' plans for on-demand premium video releases, and RBC cut its price target on AMC stock to $30 from $38, with the analyst predicting "more downside than upside to 3Q box office."
AMC stock is currently short-sale restricted, but short sellers have been sniffing around for some time. Short interest increased by a whopping 72% during the last two reporting periods, and now accounts for roughly 10 million shares. At AMC's average daily trading volume, it would take more than five sessions to repurchase all of these pessimistic positions.