NVIDIA, GrubHub Stocks Flirt With Record Highs

A short squeeze could add fuel to GRUB stock's fire

Managing Editor
Aug 7, 2017 at 10:02 AM
facebook twitter linkedin

Analysts are weighing in on chip name NVIDIA Corporation (NASDAQ:NVDA), food delivery service GrubHub Inc (NYSE:GRUB), and UGG maker Deckers Outdoor Corp (NYSE:DECK). Here's a quick roundup of today's bullish brokerage notes on shares of NVDA, GRUB, and DECK.

NVDA Stock Flirts With Record Highs Ahead Of Earnings

NVDA stock is up 1.4% to trade at $169.59, after B. Riley raised its price target on the chipmaker to $200 from $135 -- in uncharted territory. NVIDIA stock is up 190% year-over-year, and touched a record high of $170.07 on Friday. The shares could be poised for higher highs later this week following the company's earnings release on Thursday.

Analysts are decidedly split over NVDA stock. Of the 27 brokerages covering NVDA, 11 still rate it a "hold" or worse, leaving the door open for upgrades that could send the shares even higher.

Upgrade Sends GrubHub Stock to New Highs

GrubHub stock is up 3.9% to trade at $54.63 -- and just touched an all-time high of $55.65 -- after Morgan Stanley upgraded the food delivery stock to "overweight" from "equal weight," while also upping its price target to $59 from $43. The upgrade comes fresh off the heels of GrubHub's earnings release last week, and plans to buy Yelp's Eat 24 business. GRUB stock has tacked on 45% year-to-date.

Despite short interest decreasing by 3.8% during the last reporting period, over 18 million shares of GRUB are sold short, accounting for a whopping 30% of the stock's total available float. A continued short squeeze could send GRUB stock to new heights, as it would take more than 12 sessions to buy back these bearish bets, at the equity's average pace of trading. 

Deckers Stock Edges Higher After Price-Target Boost

Deckers Outdoor stock is up 0.2% to trade at $64.26, after Morgan Stanley raised its price target to $61 from $59 -- however, the new target still represents a discount to DECK's current price. The shares have pulled back 11.6% since peaking at $72.71 in early June, but have found support lately at their 80-day moving average, which is now in the vicinity of Deckers' post-earnings bull gap in May. Analysts remain on the fence, however. Of the 12 brokerages covering DECK stock, nine rate it a "hold."

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners