Anthem Stock Skies To New Record High After Earnings Beat

MacroGenics scored a big win with a licensing deal with Incyte

Managing Editor
Oct 25, 2017 at 3:08 PM
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Stocks are struggling this afternoon, with the Dow on track for its worst session in over a month. Home furnishings retailer RH (NYSE:RH) is tanking, while biotech stock MacroGenics Inc (NASDAQ:MGNX) and insurance issue Anthem Inc (NYSE:ANTM) are enjoying breakout sessions. Here's a quick look at what is moving shares of RH, MGNX, and ANTM.

Citron Tweet Sends RH Stock Lower

RH stock is down 4.5% to trade at $81.42, after Citron Research announced it had exited its long position on RH after exactly one year. It's been an outstanding run for the equity, tacking on over 180% during the past year, and shooting to an annual high of $88.50 on Monday.

However, in the options pits, bears are starting to come out of the woodwork. RH sports a 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 3.38, which ranks in the 86th percentile of its annual range. Digging deeper, the November 50 put is the most active in today's trading. 

MacroGenics Stock Sizzles After Incyte Deal

MacroGenics stock is up 15% to trade at $18.64, among the best on the Nasdaq Composite today but well off its session highs, after announcing a licensing deal with Incyte (INCY). The jump today takes has MGNX set to close above its 200-day moving average for just the second time since December.

A short squeeze could give the biotech even more juice. Short interest has increased by 6% during the last two reporting periods, and the 3.34 million shares sold short represent a healthy 11% of MGNX's total available float. 

Anthem Stock Soars To Record High After Earnings Beat

Uncertainties over Obamacare subsidies did not seem to bother Anthem, as the insurance company reported better-than-expected earnings while also raising its full-year guidance for 2018.  The upbeat report has ANTM stock up 4.5% to trade at $204.10, among the notable gainers on the S&P 500 Index. Earlier today, the insurance stock, which has added 64% year-over-year, touched a record high of $209.74. Analysts are taking notice too, with Morgan Stanley, Piper Jaffray, and Cantor Fitzgerald raising their price targets to $215, $222, and $226, respectively. 

Anthem's big day might have options bears scrambling. ANTM's Schaeffer's put/call open interest ratio (SOIR) stands at 2.17, 3 percentage points from a 52-week high. This means that put open interest more than doubles call open interest among options expiring within three months.

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