Russia Search Giant Rallies on Uber Deal Approval

Nektar stock is falling after a failed late-stage drug trial

Managing Editor
Nov 24, 2017 at 10:02 AM
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U.S. stocks are trading higher after yesterday's holiday break, with retail stocks being the main focus of the market. Three stocks making moves today are drug concern Teva Pharmaceutical Industries Ltd (NYSE:TEVA), "Russian Google" Yandex N.V. (NASDAQ:YNDX), and biopharmaceutical concern Nektar Therapeutics (NASDAQ:NKTR). Here's a closer look at what's moving shares of TEVA, YNDX, and NKTR.

TEVA Gets Boost on Job Cuts Report

Teva Pharmaceutical stock is up 4.6% to trade at $14.10, after Israeli media reported the possibility of job cuts. The drug maker is struggling under the weight of nearly $35 million in debt stemming from last year's acquisition of Allergan, as well as a soft U.S. pricing environment for generic drugs. TEVA fell to 17-year lows just north of $10 per share in early November, and the drug stock is down more than 61% on the year.

Despite the stock's steep decline, options traders are upbeat. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows TEVA with a 10-day call/put volume ratio of 1.86, which ranks in the 83rd percentile of its annual  range. This suggests calls were bought to open over puts at a faster-than-usual clip during the past two weeks. However, 18 out of the 21 analysts following TEVA stock carry "hold" or "sell" ratings.

Yandex Soars Higher on Uber Deal Approval

Shares of YNDX are up 2.5% at $34.76 -- and hit a fresh three-year high of $35.25 out of the gate -- after the company received approval from Russia's anti-monopoly watchdog, FAS, to merge its ride-sharing business with Uber in Russia, Armenia, Belarus, and other nearby markets. The tech stock most recently bounced off the long-term support of its 100-day moving average, and additional support from its 50-day and 80-day moving averages have caught some shallower pullbacks during its uptrend. YNDX is up 72% year-over year, and has seen unwavering support from analysts -- all four following the stock rate it a "buy" or better.

NKTR Falls After Negative Drug Data

Nektar stock is down 1.8% to trade at $48.85, after its pneumonia drug Amikacin Inhale failed to meet the primary and secondary goals of a late-stage study. Nektar said Bayer AG is no longer expected to move forward with development of the treatment, resulting in somewhere between $3 million and $4 million in wind-down costs for Nektar.

Today's drop comes just after NKTR touched a fresh 17-year high of $50 on Nov. 21, and the stock still boasts a year-to-date gain in the neighborhood of 300%. What's more, all but one of the eight analysts following NKTR carry "strong buy" recommendations.



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