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The Silver Lining in the Toll Brothers Stock Pullback

Plus, shares of RVNC and COLL are rallying

Dec 5, 2017 at 2:33 PM
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U.S. stocks are slightly higher this afternoon. Among the names making big moves are homebuilder Toll Brothers Inc (NYSE:TOL), biotech Revance Therapeutics Inc (NASDAQ:RVNC), and pharma stock Collegium Pharmaceutical Inc (NASDAQ:COLL). Here's a quick look at what's moving shares of TOL, RVNC, and COLL.

TOL Stock Pulls Back to 40-Day After Earnings

Toll Brothers stock is falling today after the company's disappointing earnings report, last seen 7.3% lower at $46.96. This comes after the shares just yesterday touched a 12-year high of $51.08. In fact, they still sport a year-to-date lead of 50.5%, and earlier found support at the 40-day moving average.

However, it would seem short-term options traders were prepared for a pullback. This is according to TOL's Schaeffer's put/call open interest ratio (SOIR) of 1.31, which not only shows put open interest outweighs call open interest among contracts expiring within the next three months, but it ranks in the 88th annual percentile.

RVNC Stock Lives Up to High Analyst Expectations

Revance Therapeutics stock is booming today today, thanks to news its injection for Glabellar lines, or "frown lines," met its goals in two late-stage studies. The shares earlier hit an annual high of $36.50, last seen up 39.6% at $36.30. The equity had been chopping higher over the past year, and today's surge has it breaking free from previous congestion in the $28-$29 region.

However, this rally has failed to produce any bullish analyst attention, but that may be because this group was already extremely upbeat toward RVNC shares. Specifically, all seven covering brokerage firms have "strong buy" recommendations, and the average 12-month price target is $44.38.

COLL Stock Rises Alongside Depomed

Collegium Pharmaceutical has obtained the sales rights to Depomed's (DEPO) pain drugs, Nucynta IR and Nucynta ER, and the stock has rallied 4.5% as a result to trade at $17.70, earlier touching an annual high of $20.92. The shares have roughly doubled since their Oct. 31 low near $9, crushing short sellers in the process. For example, short interest represents 30% of COLL stock's float, which would take almost a week to buy back, going by average daily volumes. However, short interest fell sharply after hitting an all-time high July, and if this trend continues, it could result in tailwinds for Collegium.

 

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