Match Bears Hit the Bricks as Revenue Beat Sparks Big Bull Gap

Match Group (MTCH) touched a new record high after surprising to the upside on quarterly revenue

Managing Editor
Nov 8, 2017 at 10:26 AM
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U.S. stocks are trading slightly lower this morning, with investors tempering some of their tax-reform optimism following big gains for Democrats in Tuesday's elections. Among the stocks making moves are online borrowing service LendingClub Corp (NYSE:LC), drug concern Regeneron Pharmaceuticals Inc (NASDAQ:REGN), and online dating specialist Match Group Inc (NASDAQ:MTCH). Here's a closer look at what's moving shares of LC, REGN, and MTCH.

LendingClub Touches Fresh Low on Weak Guidance

Shares of LendingClub are plummeting after the company fell short of third-quarter revenue estimates, and offered a weaker-than-anticipated outlook for fourth-quarter results. The dismal forecast has prompted no fewer than five price-target cuts this morning, with Compass Point dropping its target all the way to $4. LC gapped lower out of the gate and is trading 17.6% lower at $4.50, with the consumer lending stock earlier touching a fresh annual low of $4.20.

Given the equity's 14% year-to-date drop, and LC's lackluster current-quarter forecast, the shares could be vulnerable to more bearish brokerage notes in the near term. Currently, LC stock sports six "buy" or better ratings, compared to four "holds" and zero "sells" -- leaving plenty of room for potential downgrades.

Regeneron Pharma Rallies on Third-Quarter Beat

Regeneron stock -- historically a fourth-quarter S&P standout -- is rallying after the company reported a third-quarter earnings and revenue beat, bolstered by blockbuster U.S. sales of its Eylea drug. At last check, REGN is up 4.1% at $421.13, rising above its 320-day moving average -- which has acted as troublesome resistance on several occasions in 2017, including the last week.

Despite REGN stock's 22.5% drop from its late-June high, analysts have actually upped their expectations for the shares in recent months. The equity's average 12-month price target from analysts has increased to $496.30 from the early August mean of $493, with the current target implying expected upside of 17.8% from here.

Match Touches Fresh High on Robust Revenue

Match stock is rallying today, as a third-quarter revenue beat overshadows earnings that arrived just short of consensus estimates. MTCH shares are trading up 14.3% at $30.75, just off today's new record high of $32.87. Following this big bull gap, the online matchmaker is up an impressive 80% on the year, and currently holds a special place in analysts' hearts. Of the 13 brokerage firms following MTCH, 11 sport "strong buy" recommendations.

Conversely, short interest on MTCH rose nearly 10% during the last two reporting periods, and now represents more than 42% of the stock's total available float. At Match's average daily trading volume, it would take 11 days for the shorts to cover their bearish bets -- suggesting a short squeeze is currently playing out for the stock.


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