Switch Stock Impressive in IPO; Jefferies Sinks ICPT Stock

ICPT stock is short-sale restricted after a cautionary note from Jefferies

by Patrick Martin

Published on Oct 6, 2017 at 2:06 PM

U.S. stocks are trading lower this afternoon, with the Dow, S&P 500, and Nasdaq Composite all on track to snap their record-setting win streaks. Tech stock Switch, Inc (NASDAQ:SWCH) is making waves with its IPO, while biotech stock Intercept Pharmaceuticals Inc (NASDAQ:ICPT) and global consumer products stock Helen of Troy Limited (NASDAQ:HELE) are sinking. Here's a quick look at what is moving shares of SWCH, ICPT, and HELE.

Switch Stock Roars Out Of The Gate in IPO

Switch Inc, a computer hardware company that designs data centers, had its initial public offering (IPO) today. The company raised $531 million, good for the second biggest IPO this year. SWCH stock is currently trading at $21.99, up 29% from its IPO price of $17. Earlier today, the stock touched an intraday high of $24.90, and its impressive action out of the gate will surely catch investors' eye as the fourth quarter rolls along. 

Jefferies Report Sinks Intercept Stock

Intercept Pharmaceuticals stock is down 7% to trade at $67.67 and is currently short-sale restricted, after Jefferies reported that summer seasonality could slow third quarter prescriptions for Ocaliva, the company's controversial liver disease drug. It's been a rough stretch for ICPT stock, which has shed over 37% year-to-date and fell to a three-year low of $54.98 on Sept. 27.

Nevertheless, some analysts remain upbeat. Of the 15 brokerages covering ICPT stock, one-fifth rate the shares a "buy" or "strong buy." Continued technical struggles could have analysts re-evaluating their outlooks.

Mixed Earnings Results Sink HELE Stock

Helen of Troy reported a second-quarter earnings beat last night, but also lowered its guidance for 2018. As a result, HELE stock is down 8% to trade at $89.29, a 13% drop from its annual high of $102.88 on Aug. 14. HELE's average 12-month price target is $104.25, indicating the equity could be ripe for price-target cuts in the near future.

Short sellers are likely cheering the equity's fall. Short interest has increased by 22% during the last two reporting periods, and is currently at its highest point since August 2016. However, this only accounts for 2.6% of the HELE's total available float, indicating that there is still plenty of room for short sellers to hop aboard the stock. 

VIX Options Signal Points to Possible Volatility Spike
VIX open interest is at an annual low
Altaba Stock May Be Sending Up a Buy Signal
AABA has seen some unusual options activity in the past couple of weeks
VFC Call Options Hot Ahead of Fiscal First-Quarter Earnings
VFC stock touched an all-time high earlier today
From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Trading Earnings Releases with Options
There are several “conventional” methods of trading earnings that most option traders are taught... Sponsored by TheoTrade
NHTC, AA, MRSN Stocks Suffer Nasty Pullbacks
A Chinese investigation is sinking NHTC
Alphabet Kicks Off Busy Week of Big-Cap Earnings
Dow components and FAANG stocks will be in focus next week
Trading Earnings Releases with Options
There are several “conventional” methods of trading earnings that most option traders are taught... Sponsored by TheoTrade