Viavi Solutions Claws Back from 6-Month Low; Pointer Telocation Stock Pops Post-Earnings

Pointer Telocation stock is trading higher after reporting an earnings beat and solid growth in subscribers and revenue

Aug 16, 2017 at 2:06 PM
facebook twitter linkedin

U.S. stocks are trading higher today, despite rising rate-hike expectations. Among the stocks in the spotlight today are networking communications provider Viavi Solutions Inc (NASDAQ:VIAV), real estate investment trust Spirit Realty Capital, Inc (NYSE:SRC), and transportation stock Pointer Telocation Ltd (NASDAQ:PNTR). Here's a quick look at what's moving shares of VIAV, SRC, and PNTR.

VIAV Sinks to 6-Month Low on Soft Guidance

Although the tech company reported better-than-expected fiscal fourth-quarter earnings, Viavi Solutions stock is down 0.7% to trade at $10.66, due to weak first-quarter guidance. Earlier in the session, VIAV traded as far south as $9.41 -- a six-month low, which marked the stock's first intraday trip below its 200-day moving average since May 2016.

VIAV's results received mixed reviews from brokerages, with a price-target hike to $13 from $12 at Craig-Hallum countered by a price-target cut to $12.50 from $14 at B. Riley. Overall, six of the eight analysts following the stock rate it a "strong buy."

However, there are plenty of skeptics on the stock. Short interest on VIAV jumped more than 7% during the past two reporting periods, and now represents roughly 5% of the stock's total available float.

SRC Scores Upgrade on Buyback News

Spirit Realty Capital stock is up 1.5% to trade at $8.60, after announcing a new $250 million stock buyback program -- which sparked a two-notch upgrade to "buy" from "underperform" and a price-target hike to $9.75 from $6.50 from Bank of America-Merrill Lynch. The stock is down 20.8% year-to-date, and resistance from that round 20% year-to-date loss level around $8.70 could prove to be a significant sticking point, since it coincides with SRC's pre-bear gap low from early May. Most analysts remain skeptical; 12 of the 15 analysts following the real estate stock rate it a "hold" or "sell."

Pointer Telocation Stock Soars After Earnings Beat

Year-over-year gains of 24% in both second-quarter revenue and subscriber growth, paired with better-than-expected earnings, have Pointer Telocation stock up 11.4% to trade at $13.36. At its intraday high of $13.60, PNTR was just over one point away from its nearly 11-year high of $14.65, set on July 18. Today's jump has the transport stock trading back above support at its 20-day and 40-day moving averages, which just completed a bearish cross amid PNTR's recent pullback from that mid-July peak.

Given the stock's recent trip up to multi-year highs, bears have largely jumped ship on PNTR. Short interest on the stock shrunk by 31.6% during the most recent reporting period, and now represents only 0.4% of the stock's total available float.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1