Analysts Raise the Bar as FibroGen Stock Breaks Out on Drug Data

VRX rallies on debt-reduction optimism, while FGEN soars into uncharted territory

Aug 8, 2017 at 10:47 AM
facebook X logo linkedin

The Dow Jones Industrial Average (DJIA) got off to a slow start this morning, but has since edged just high enough to extend its lengthy record-setting streak. Drug company Valeant Pharmaceuticals Intl Inc (NYSE:VRX), car rental service Avis Budget Group Inc. (NASDAQ:CAR), and pharma concern FibroGen Inc (NASDAQ:FGEN) are three stocks in the news this morning. Here's a quick look at what's moving shares of VRX, CAR, and FGEN.

VRX Put Options Active Post-Earnings

Valeant Pharmaceuticals stock is up 8.4% at $16.66, after the Bausch + Lomb parent topped analysts' expectations with its adjusted second-quarter profit of $1.05 per share. Additionally, Valeant said it's on track to trim $5 billion from its massive debt load earlier than the previously set February target date.

Traders were favoring weekly call options on VRX ahead of earnings, but it's a put strike that's attracting massive attention in the early innings of today's session. Specifically, the VRX October 16 put has traded volume in excess of 10,200 contracts -- an amount that represents nearly 25% of the stock's average daily call volume.

CAR Tumbles on Earnings Miss

After the company's adjusted second-quarter earnings fell short of expectations, Avis Budget Group shares are down 9.6% at $30.17. Options traders were paying up big to bet on CAR ahead of earnings. As of last night's close, Schaeffer's Volatility Index (SVI) of 85% registered in the 100th annual percentile, as the stock's front-month options were pricing in some of the highest volatility expectations of the past year.

Leerink Looks for More Record Highs from FGEN

FibroGen stock has scored price-target hikes from no fewer than three brokerage firms, despite a second-quarter earnings report that generally missed Wall Street's mark. Instead, traders and analysts are cheering upbeat drug data, as the company's treatment for idiopathic pulmonary fibrosis aced a mid-stage trial.

The loftiest target comes courtesy of Leerink, which upped its price forecast to $82 from $52. The freshly revised target implies expected upside of 145% to the stock's Monday close at $33.40 -- but FGEN gapped sharply higher at the open today, and is currently up 50.9% to trade at $50.40. Earlier, the shares hit a new record high of $51.45.

FibroGen has yet to attract much of a following among options traders, but those who are speculating on the stock have adopted a bearish lean. Schaeffer's put/call open interest ratio (SOIR) of 1.61 ranks in the 100th percentile of its annual range, pointing to a significant put skew among short-term options traders.  


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI