ZYME Stock Gaps Higher on Lucrative Janssen Biotech Deal

Mattel isn't the only toymaker rallying in the wake of today's takeover talk

by Emma Duncan

Published on Nov 13, 2017 at 3:38 PM

Stocks are trading just above breakeven this afternoon, with upside limited by continued tax plan uncertainty. Among the stocks making big moves are drug concern Zymeworks Inc (NASDAQ:ZYME), e-commerce company Baozun Inc (NASDAQ:BZUN), and toymaker Hasbro, Inc. (NASDAQ:HAS). Here's a quick look at what's moving shares of ZYNE, BZUN, HAS.

Zymeworks Stock Tops NYSE on J&J Licensing Deal

ZYME stock is at the top of New York Stock Exchange (NYSE) after earlier announcing a licensing agreement with Johnson & Johnson (JNJ) division Janssen Biotech -- a deal that includes $50 million in upfront payments for ZYME, along with up to $282 million in development and as much as $1.12 billion in commercial milestone payments, plus tiered royalties.

The biotech stock is trading up 28.1% at $8.80 this afternoon. With a short-interest ratio of more than five days to cover, it's likely that ZYME is benefiting from a short squeeze today.

Baozun Soars on Singles Day Revenue Surge

Shares of BZUN are rallying after the company said its annual Singles Day sales roughly doubled year-over-year to roughly $751 million. BZUN stock is trading up 6.7% at $35.06, at last check, and is on track to close above recent resistance at its 20-day and 80-day moving averages. This post-Singles Day lift has widened BZUN's year-to-date gain to 190%.

Despite the breakout price action in BZUN this year, short interest accounts for more than 29% of the stock's total available float. At Baozun stock's average daily trading volume, it would take more than three days for the shorts to cover all of their bearish bets.

Hasbro Gaps Higher on Mattel Interest

Habro stock has gapped higher today, following reports that the company submitted a new takeover bid for fellow toymaker Mattel (MAT). The stock was up 6.2% at $97.15 at last glance, establishing itself as one of the top S&P 500 Index (SPX) gainers -- but stopping short of familiar pressure in the $99-$100 area. This region has capped upside in HAS since mid-August.

Though overall option volume on the stock is fairly light, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows HAS with a 50-day put/call volume ratio of 1.40. Ranking in the 82nd percentile of its annual range, this ratio suggests that puts were bought to open over calls at a faster-than-usual clip during the past 10 weeks.

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