Plus, the biotech higher on development plans for its liver disease drug
Stocks are mostly higher today, with the Dow heading toward its eighth straight win. Apparel retailer Tailored Brands Inc (NYSE:TLRD) and biotech stock Galectin Therapeutics Inc. (NASDAQ:GALT) are enjoying particularly upbeat days, while photocopy specialist Xerox Corp (NYSE:XRX) is struggling. Here's a closer look at what has shares of TLRD, GALT, and XRX moving today.
Upgrade Sends Tailored Brands Stock to Top of NYSE
Tailored Brands stock is up 12.2% to trade at $35.44, the best stock on the New York Stock Exchange (NYSE) today, after receiving an upgrade to "buy" from "hold" at Jefferies, as well as a price-target hike to $40 from $30. The analyst in coverage sees a "very attractive" opportunity in custom clothing, given higher margin dollars and low inventory requirements.
Earlier today, TLRD scored a multi-year high of $35.88, and is on track for its best session since early December. The shares have more than tripled in the past nine months, guided higher by their rising 10-day moving average since late March.
The security is ripe for a short squeeze as well. Short interest fell by 14% in the most recent reporting period, but the 6.27 million shares still sold short represent 14% of TLRD's total available float. At the stock's average daily trading volume, it would take more than eight days for shorts to buy back their positions.
Full Steam Ahead for Galectin and Liver Disease Drug
Galectin stock is up 25.8% to trade at $4.23, one of the best stocks on the Nasdaq today, after the biotech company announced it will proceed with Phase 3 development of its liver disease drug following a meeting with the Food and Drug Administration (FDA). Further, the company said it disagrees with the FDA's decision not to grant "breakthrough therapy" status for the cirrhosis treatment at this time.
The news puts GALT stock back above its year-to-date breakeven level, and on track for its best day of 2018. The shares had struggled since their three-year high of $6.74 on Jan. 16, but the pullback was contained by their 200-day moving average.
Short interest on GALT continues to rise, having increased by 53% in the two most recent reporting periods, to 2.57 million shares, the most since 2014. This represents nearly 10% of GALT's total available float, and more than a week of pent-up buying power.
Options Volume Hot as Xerox Stock Falls
Xerox pulled out of its $6.1 billion merger deal with Fujifilm Holdings. Activist investors Carl Icahn and Darwin Deason, who collectively own a 15% stake in Xerox, believed XRX was undervalued in the deal. In response, Xerox stock was down 5.5% to trade at $28.50, at last check -- near the bottom of the S&P 500 -- and earlier fell to an annual low of $27.11.
Options traders have come out of the woodwork today. Xerox has seen roughly 22,000 calls and 6,200 puts change hands -- nine times the average intraday volume and already an annual high. The most popular are the July 30 and 31 calls, where a mixture of buyer and seller activity is detected.