Under Armour Stock Paces for Best Day in Years After Earnings

FTC filed an antitrust complaint against PDCO and HSIC stock

Patrick Martin
Feb 13, 2018 at 2:56 PM
facebook twitter linkedin


U.S. stocks have erased earlier losses ahead of tomorrow's key inflation update. Several individual names are making big moves, including healthcare stocks Patterson Companies, Inc. (NASDAQ:PDCO) and Henry Schein, Inc. (NASDAQ:HSIC) -- which are stumbling -- while athletic wear stock Under Armour Inc (NYSE:UAA) is having its best day in years. Here's a closer look at what's moving shares of PDCO, HSIC, and UAA today.

FTC Complaint Sinks PDCO, HSIC Stocks

Patterson Companies stock is down 4.7% to trade at $31.35, after the Federal Trade Commission (FTC) filed an antitrust complaint against the company and other dental supply firms for refusing to give discounts to dental buying groups. PDCO shares fell to a six-year low of $28.77 out of the gate, and have now shed 27% year-over-year.

There's room for analysts to downwardly revise their outlooks on PDCO stock, too, which could create even bigger headwinds. While three brokerages still maintain a "strong buy" rating, the average 12-month price target of $38.96 stands at a 25% premium to the equity's current price.

The FTC complaint has sent Henry Schein shares lower, as well, down 6.6% to trade at $67.43. The stock earlier fell to a three-year low of $63.01, and has now given back nearly 24% in the past nine months.

Although currently short-sale restricted, short sellers are likely cheering HSIC's drop today. Short interest has grown nearly 400% since mid-July to 13.16 million shares, the highest point in eight years. This represents a healthy 8.5% of HSIC's total available float.

UAA Call Volume Explodes After Revenue Beat

Under Armour stock is up 16.1% to trade at $16.53 -- one of the best stocks on the New York Stock Exchange (NYSE) today -- after the athletic apparel maker's fourth-quarter revenue exceeded expectations, and Instinet upped its price target by $1 to $10. UAA shares are on track for their single best session since January 2016. Since falling to a five-year low of $11.40 on Nov. 6, Under Armour stock has added back 43%. 

Today's bull gap is possibly be getting a hand from a round of short covering. Short interest turned lower in the latest reporting period, but still accounts for 15.2% of the stock's available float, or 8.2 times the average daily pace of trading.

Regardless, options traders may be targeting more gains by week's end. Almost 46,000 calls have traded today, seven times the daily rate, and pacing in the 99th percentile of its annual range. The bulk of the action is centered at the February 17 call, and some of the activity could be the result of a bullish roll from the 16.50 strike.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 

Partnercenter