3 Stocks Staging Big Post-Earnings Gaps

GameStop is trading near a five-year low after missing Wall Street's estimates

Emma Gilkey
Aug 25, 2017 at 11:10 AM
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U.S. stocks have managed a positive start to the day, with attention focused on the central bank summit fed speeches due this afternoon from Fed Chair Janet Yellen and European Central Bank President Mario Draghi. Among specific equities in focus are software developer Autodesk, Inc. (NASDAQ:ADSK), gaming retailer GameStop Corp. (NYSE:GME), and data analysis concern Splunk Inc (NASDAQ:SPLK). Here's a quick look at what's moving shares of ADSK, GME, and SPLK.

ADSK Stock Gaps Up to New Highs

Autodesk has received no fewer than 10 price-target hikes after reporting a narrower-than-expected second-quarter loss. Most notably, Evercore raised its price target on ADSK to $135 from $115.

ADSK stock is trading up 5.2% at $116.35, bringing its year-over-year gain to 69%. The software stock has been on a consistent uptrend since June 2016, and today's bull gap has propelled ADSK above recent congestion around $115 to a new record high of $119.73.

Prior to today's influx of post-earnings price-target boosts, analysts were already bullishly positioned on the outperforming tech name. Among the 20 analysts tracking ADSK, 15 carry a "buy" or "strong buy" recommendation.

GameStop Plunges to Multi-Year Low Post-Earnings

GME is trading down 12.4% at $19.07 after reporting a second-quarter earnings miss last night. Earlier, the stock fell as low as $18.72, marking its lowest price in nearly five years. Today's bear gap continues GME's longer-term downtrend following a brief period of consolidation in the $20-$22 range, with the stock down 34% year-over-year.

Options players were opting for bullish bets in the weeks leading up to GME's quarterly report. The stock's 10-day call/put volume ratio of 1.09 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 85th percentile of its annual range. This indicates a healthier-than-usual appetite for GME calls over puts

Splunk Shorts Hit the Bricks After Earnings

SPLK reported a second-quarter earnings beat, with revenue for the period also surpassing estimates. The software stock has garnered no fewer than 11 price-target hikes, along with a Susquehanna upgrade to "positive" from "neutral." Splunk shares are trading up 9.8% at $66.18, with a year-to-date gain now exceeding 29%. With more than 10% of the stock's float sold short, some of today's gains could be the result of a short-squeeze situation.


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