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Office Depot, Iconix Brand Stocks Land on Short-Sale Restricted List

Office Depot stock has shed 33% year-to-date

Managing Editor
Oct 30, 2017 at 3:11 PM
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Stocks are lower this afternoon, as political drama weighs down markets. Drugmaker Endo International plc - Ordinary Shares (NASDAQ:ENDP) is enjoying a solid session, while specialty retailer Office Depot Inc (NASDAQ:ODP) and brand management firm Iconix Brand Group Inc (NASDAQ:ICON) are sinking. Here's a quick look at what's moving shares of ENDP, ODP, and ICON.

Endo International Stock Soars on Preliminary Results

Ahead of the company's earnings release next Thursday morning, Endo International stock is up 2.7% to trade at $6.05, after the drugmaker this morning forecasted third-quarter earnings that were higher than expected. The upbeat report is a dose of some much-needed good news for ENDP stock, which has shed 63% year-to-date, and fell to a 15-year low of $5.77 on Friday. 

A short-squeeze could provide fuel to ENDP's rally. Short interest increased by 2.7% during the last reporting period to 21.89 million shares, which represents a healthy 11% of the stock's total available float. 

Downgrade Buries Office Depot Stock

Office Depot stock is down 18.7% to trade at $3.03, among the worst on the Nasdaq Composite and currently short-sale restricted, after J.P. Morgan Securities downgraded the retailer to "underweight" from "neutral." Analysts cited struggling sales and a competitive environment as reasons for the downgrade. The news has the equity flirting with its annual low of $3.01, which occurred roughly one year ago on Nov. 1. For the year, Office Depot has lost roughly 33%. It is the second time this month that the office supplies retailer has shed 17% or more in a single-day session. The downgrade today is also nothing new for ODP stock. Of the six brokerages covering the equity, five rate the shares a tepid "hold."

Iconix Brand Stock Craters After Walmart Partnership Set To End

Iconix stock is the worst performer on the Nasdaq today, down a whopping 52% to trade at $2.37 after it was reported the apparel company's DanskinNow license with Walmart will not be renewed beyond January 2019. The move sends ICON stock to its lowest point in 13 years. ICON stock is currently short-sale restricted, and has now lost over 76% year-to-date.

Although volume is light, options traders have been piling on puts lately. ICON's Schaeffer's put/call open interest ratio (SOIR) of 6.81 ranks at the top of its annual range, telling us that near-term speculators have never been more put-heavy this past year.

 

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