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
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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.

 

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