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Deutsche Bank Breathes Life Into a Struggling Biotech Stock

Caterpillar stock is continuing its huge year

Dec 13, 2017 at 2:09 PM
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The Dow is pushing higher once again, touching another record high. Among the names making big moves are Dow stock Caterpillar Inc. (NYSE:CAT), photonic products producer Lumentum Holdings Inc (NASDAQ:LITE), and biotech Intercept Pharmaceuticals Inc (NASDAQ:ICPT). Here's a quick look at what's moving shares of CAT, LITE, and ICPT.

CAT Stock Notches Record High

Caterpillar stock is up 3.6% at $148.56, earlier touching a record high of $149.05, after the company announced strong North American sales for construction machinery over the past three months. Plus, Barclays initiated coverage on the equity with an "overweight" rating. CAT shares are now up over 60% in 2017, but most analysts have remained bearish. For instance, 12 of 20 covering brokerage firms maintain "hold" or "strong sell" recommendations. Meanwhile, the security is now trading above its average 12-month price target of $147.64. As such, additional bullish attention could be coming Caterpillar's way.

Apple Finisar Investment Drops LITE Stock

News of Apple's (AAPL) investment in Finisar (FNSR) is weighing on Lumentum stock today, which has dropped 5.9% to trade at $48.70. The shares earlier touched their lowest point since May, as they trade back below their 320-day moving average. Short sellers, though, are hoping the equity continues to struggle. Over 21% of LITE's float is sold short, with these bearish bets touching a record high last month. Going by average daily volumes, it would take Lumentum short sellers more than eight sessions to cover their positions.

ICPT Stock Bounces After Bull Note

Intercept Pharmaceuticals has jumped 8.9% to trade at $66.06, after Deutsche Bank started coverage with a "buy" rating. Analysts there say concerns surrounding the company's liver drug are overblown. This price action is just a drop in the bucket for investors, however, since ICPT stock was trading above $135 in late July. Overall, the shares have shed 39% year-to-date.

Meanwhile, a number of traders are hoping Deutsche Bank is wrong. That is, almost 31% of the equity's float is sold short, and going by average daily volumes, it would take short sellers 8.4 sessions to buy back their positions.

 

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