Boston Beer Stock Crushes Shorts After Upgrade

CLDR stock is tumbling on weak guidance and a Deutsche Bank downgrade

by Karee Venema

Published on Apr 4, 2018 at 3:20 PM
Updated on Jun 24, 2020 at 10:16 AM

Stocks have erased sharp early morning losses to trade in positive territory. Amid specific stocks seeing volatile trading are pharmaceutical firm Tenax Therapeutics Inc (NASDAQ:TENX), software name Cloudera Inc (NYSE:CLDR), and beer maker Boston Beer Company Inc (NYSE:SAM). Here's a quick roundup of what's moving shares of TENX, CLDR, and SAM.

Tenax Therapeutics Rally Halted at a Familiar Ceiling

Tenax Therapeutics stock shot to an intraday high of $11.92 earlier, but ran out of steam near the $12 mark -- a region that's contained several rally attempts since a late July bear gap. While the shares have since pared these gains, they're still up 62.8% to trade at $8.66. TENX stock is reacting to news the Food and Drug Administration (FDA) said the company could submit its pulmonary hypertension treatment, levosimendan, for an existing investigational new drug application.

The shares gained almost 18% last month, yet just one analyst currently covers Tenax Therapeutics. While this brokerage firm maintains a "strong buy" rating, there's room for more analysts to weigh in amid the stock's continued breakout.

Cloudera Stock Hits Record Low After Earnings

Cloudera stock hit a record low of $13.20 earlier, and was last seen trading down 40% at $13.37, after the software firm issued a weak full-year forecast -- though it reported better-than-expected fourth-quarter results on higher subscription revenue. A round of bearish brokerage notes is pouring salt on the proverbial wound, including a downgrade to "hold" from "buy" at Deutsche Bank. The brokerage firm joined no fewer than four others in cutting its CLDR price target.

Amid this volatile session, CLDR options volume has exploded. More than 18,600 contracts have traded so far -- 15 times what's typically seen at this point in the day, and volume at a new all-time peak. Most active is the April 12.50 put, where it looks like traders could be selling to open the positions to set a short-term floor for the tech stock.

Cowen Isn't Worried About Legal Weed Impact on SAM Stock

Boston Beer stock is up 6.5% to trade at $207.00 -- and earlier tagged a new two-year high of 208.75 -- after Cowen and Company upgraded the name to "market perform" from "underperform," and boosted its price target to $195 from $150. While the brokerage firm noted the legalization of marijuana could negatively impact alcohol sales, namely for lower-end beer brands, it said Boston Beer's non-beer trends look surprisingly robust.

The security has now rallied almost 29% since taking a sharp bounce off its 200-day moving average in early March, and short sellers start could start covering their losing bets at a faster clip. Though short interest edged down in the most recent reporting period, 2.12 million SAM shares are still sold short -- more than 25% of the stock's available float, and 15.3 times the average daily pace of trading.


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