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The Pharma Stock Sinking on a Drug Fail; AMD Among Rallying Chip Stocks

Advanced Micro Devices stock is among the best of the S&P 500 Index

Aug 14, 2017 at 12:51 PM
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U.S. stocks are trading higher today, as the Dow boasts a triple-digit lead and climbs back above the 22,000 level amid easing tensions with North Korea. Among the stocks making moves today are car part manufacturer Sorl Auto Parts, Inc. (NASDAQ:SORL), specialty drug company Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), and chip stock Advanced Micro Devices, Inc. (NASDAQ:AMD). Here's a quick look at what's moving shares of SORL, ZYNE, and AMD.

Sorl Auto Parts Breaks Down After Earnings 

Sorl Auto Parts stock is down 15.5% to trade at $5.89, after the company reported weaker-than-expected earnings. Today's percentage drop places the car parts stock among the worst on the Nasdaq, and has SORL poised to close below its 20-week moving average for the first time since late March.

Still, the stock is up more than 200% year-over-year, and has nearly doubled year-to-date. While the only analyst following SORL rates it a "strong buy," short sellers were growing wary ahead of earnings. Short interest on Sorl Auto Parts jumped 24.5% in the past two reporting periods, and now accounts for nearly 17% of the stock's total available float. Today, however, SORL is on the short-sale restricted (SSR) list.

Disappointing Drug Data Sends Zynerba Stock to New Low

Joining SORL as one of the worst stocks on the Nasdaq today is Zynerba Pharmaceuticals stock, now down 9.1% to trade at $6.39, after earlier plunging to an annual low of $5.42. The pharmaceutical company released results for an osteoarthritis treatment mid-stage trial that did not meet its primary endpoint; this is the second set of disappointing drug data to push ZYNE stock down this month. The shares are now down roughly 60% year-to-date. 

Although ZYNE is on the SSR list today, plenty of shorts are likely cheering today's decline. Short interest represents roughly 29% of ZYNE's total float. At the stock's average daily trading volume, it would take a week to buy back all the shorted sales.

Advanced Micro Devices Stock Among Best of SPX

Chip stocks are leading the charge on the S&P 500 Index (SPX) today, with analysts encouraging traders to buy the pullback on AMD sector peer NVIDIA stock. Advanced Micro Devices stock is up 4.5% to trade at $12.77 -- near the top of the S&P today. The shares recently rebounded off their 200-day moving average, which has contained several pullback attempts of late, but are still staring up at July's all-time high of $15.65.

Option buyers have been upping the bearish ante, as evidenced by AMD's 10-day put/call volume ratio of 0.49 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- in the 82nd percentile of its annual range. Should the shares resume their quest for record highs, an exodus of option bears could add fuel to the Apple supplier's fire.

 
 

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