Finish Line Gets Faded; Bearish Analyst Note Can't Stop Alibaba Stock

FINL, BLUE, and BABA are all heavily shorted stocks

Oct 2, 2017 at 9:48 AM
facebook X logo linkedin

Analysts are weighing in on athletic apparel retail stock The Finish Line, Inc. (NASDAQ:FINL), gene therapies specialist bluebird bio Inc (NASDAQ:BLUE), and Chinese e-commerce name Alibaba Group Holding Ltd (NYSE:BABA). Here's a quick roundup of today's bearish brokerage notes on shares of FINL, BLUE, and BABA.

Susquehanna Downgrades Finish Line Stock

Shares of Finish Line are down 5.4% to trade at $11.36, after Susquehanna issued a downgrade to "neutral" from "positive -- saying the stock's recent rally indicates hopes for a buyout from U.K. retailer Sports Direct have already been priced in. Since gapping to an eight-year low of $6.90 on Aug. 29, FINL stock is up more than 72%, and quickly erased post-earnings losses in late September.

There's likely been a number of short sellers caught off guard by this recent upside. Short interest surged 17.3% in the two latest reporting periods to 11.94 million shares -- the highest in at least 15 years.

bluebird bio Stock Slips After Bearish Morgan Stanley Note

Morgan Stanley lowered its outlook on bluebird bio to "underweight" from "equal-weight," sending the shares down 6.5% to $128.75. Today's setback runs counter to BLUE's longer-term trajectory, with the stock up more than 112% year-to-date -- and fresh off Friday's two-year high of $143.50.

Should BLUE stock shake off today's analyst-induced setback and resume its uptrend, there's plenty of room for a round of short covering to create more tailwinds. Currently, 19.2% of bluebird bio's float is sold short, or 6.5 times the stock's average daily pace of trading.

Alibaba Brushes Off Price-Target Cut

Alibaba saw its price target dropped to $210 from $220 at Raymond James, though this still represents expected upside of more than 21% to last Friday's close -- and is having little effect on today's price action. In fact, BABA shares were last seen up 0.75% at $173.90, bringing their 2017 gains just below 100%.

Outperforming BABA stock is also heavily shorted -- making it a prime candidate for a short squeeze. Short interest on Alibaba swelled 5.1% in the two most recent reporting periods to 139.80 million shares. It would take nearly eight days to cover these shorted shares, at the stock's average daily pace of trading.

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!