Fabrinet Stock Sits Atop NYSE After Earnings Beat

Molina Healthcare could lose out on several Florida contracts

by Patrick Martin

Published on Feb 6, 2018 at 2:25 PM

U.S. stocks are on a wild ride following a historic sell-off, with the Dow trading on both sides of the aisle so far today. Among the stocks moving higher today are optical components concerns Oclaro Inc (NASDAQ:OCLR) and Fabrinet (NYSE:FN), while Medicaid solutions provider Molina Healthcare, Inc. (NYSE:MOH) is struggling. Here's a closer look at what's moving shares of OCLR, FN, and MOH today.

OCLR Stock Gets Post-Earnings Boost

Oclaro stock is up an impressive 19.7% at $6.76, at last check -- among the top Nasdaq stocks today -- thanks to a well-received earnings report. However, in light of a lackluster current-quarter forecast, four brokerages issued price-target cuts, including to $8 at Stifel. OCLR's burst today could put the shares above their 10-week moving average for the first time since mid-January. Just yesterday, the equity was flirting with annual lows at $5.61.

A short squeeze could give OCLR's rebound some legs. Short interest dropped by 10% during the last reporting period, but still represents a hefty 18.5% of OCLR's total available float, and nearly eight days of pent up buying demand.

Earnings Beat Sends FN Stock to Top Of NYSE

Fabrinet stock is up 23% to trade at $29.66 today, at the top of the New York Stock Exchange (NYSE), after the optical component company delivered a fiscal second-quarter earnings report that surpassed analyst forecasts. The news has vaulted FN shares past their 50-day moving average for the first time since mid-August. Just yesterday, the security was trading near two-year lows at $24.02.

Fabrinet is another stock that could benefit from a short squeeze. Roughly 10% of FN's total available float is sold short. Going by the stock's average daily trading volume, it would now take these bears more than eight days to buy back their positions. 

Molina Healthcare Stock Nipped By Contract Drama

Shares of MOH are down 7.6% at $80.96, after the company was left out of negotiations for several regional contracts in Florida. Analysts at J.P. Morgan Securities surmised that if finalized, this could represent a loss of 6% to 7% of premium revenue. MOH shares are now trading below their 50-day moving average for the first time since mid-October. Nevertheless, the healthcare stock has tacked on 41% year-over-year, and touched a record high of $93.98 on Jan. 19. 

Short sellers are likely cheering today's downturn. Short interest increased by 8% during the last reporting period, and the 7.32 million shares sold short represents a whopping 17% of MOH's total available float. 


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