Stamps.com Stock Torches Short Sellers with Unbelievable Earnings Rally

Short sellers could be feeling the heat as STMP stock hits record highs

Managing Editor
Aug 3, 2017 at 3:23 PM
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U.S. stocks are sluggish today, as markets process mixed economic data. Among names in the spotlight are offshore driller Transocean LTD (NYSE:RIG), postage name Stamps.com Inc. (NASDAQ:STMP), and Medicaid solutions provider Molina Healthcare, Inc. (NYSE:MOH). Here's a quick look at what's moving shares of RIG, STMP, and MOH.

RIG Stock Rallies on 2Q Results

Transocean stock is up 5.6% to trade at $9.11, among the best-performing S&P 500 stocks today, after the company's second-quarter results. It's a round of much-needed good news for RIG stock, which has shed 37% year-to-date, and hit an annual low of $7.67 on June 21. Meanwhile, today's rally stopped out right at the stock's 80-day moving average, a trendline not conquered on a closing basis since early March. 

Despite RIG's rough stretch, near-term options traders are quite call heavy. The equity sports a Schaeffer's put/call open interest ratio (SOIR) of 0.59, which ranks 1 percentage from its 52-week high. More specifically, speculators targeting options expiring within three months are unusually call-skewed at the moment. 

Stamps.Com Stock Explodes to Record High After Earnings

Stamps.com stock is the top stock on the Nasdaq today, up 30% to trade at $197.45 and earlier touching a record high of $201.55, after reporting earnings and revenue that vastly exceeded expectations. In addition, the online postage company raised its outlook for the year. It's been a stellar year for STMP stock, which has now exploded 155% over the past year. 

Although STMP has had an incredible run up the charts, it remains heavily shorted. Short interest accounts for 25% of the stock's total available float, and at STMP's average daily trading volume, it would take more than 11 sessions to repurchase those pessimistic positions.

Molina Healthcare Stock Sinks Amid Restructuring Update

Molina Healthcare is down 6% to trade at $62.24, after it announced it would be exiting Obamacare markets in Wisconsin and Utah. The insurer also stated it would be increasing premiums in remaining markets by 55% in 2018, and will be laying off over 1,500 employees in the process of its restructuring. The round of bad news was exacerbated by Piper Jaffray and Jefferies, who cut their price targets to $70 and $60, respectively. MOH stock has pulled back significantly since its July 21 high of $72.79, and now finds itself staring up at its 80-day moving average, a trendline it hasn't closed below since May 1. Analysts are firmly downbeat on the healthcare provider, with eight of 10 calling it a "hold" or worse. 



 

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