MMR

Blink Stock Scales the Nasdaq for Second Time In Two Weeks

The FDA rejected Evolus' rival Botox drug, sending the Wall Street rookie reeling

Managing Editor
May 16, 2018 at 2:58 PM
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Stocks are climbing today, thanks to encouraging retail earnings. Among stocks making particular noise today, chip name Micron Technology, Inc. (NASDAQ:MU) and penny stock Blink Charging Co (NASDAQ:BLNK) are pushing higher, while drug stock Evolus Inc (NASDAQ:EOLS) is gapping lower. Here's a closer look at what has shares of MU, BLNK, and EOLS moving today.

Bullish Brokerage Note Lifts Micron Stock

Micron Technology stock, along with sector peer Advanced Micro Devices (AMD), is higher after some bullish analyst attention today, up 4.5% to trade at $56.43. RBC initiated coverage on the chip stock with an "outperform" rating and $80 price target -- a 42% premium to the equity's current price. Analyst Amit Daryanani said Micron offers "a unique way for investors to gain exposure to the DRAM and NAND markets" at an attractive valuation.

In addition, traders are digesting the latest hedge fund disclosures. Appaloosa upped its stake in Micron by nearly 29% last quarter, while Omega Advisors initiated a stake. MU shares have now added more than 10% in the past week, and have almost doubled in the past year, with pullbacks contained by support from their 160-day moving average.

Options traders have demonstrated bearish tendencies of late, however. Micron's Schaeffer's put/call open interest ratio (SOIR) of 0.73, which ranks higher than 96% of all comparable readings taken in the past year. Simply stated, options traders are more put-heavy than usual among contracts set to expire in three months or less.

Earnings Report Powers Blink Stock to Top of Nasdaq

Blink stock is up 34.8% to trade at $7.35 -- the best stock on the Nasdaq today -- after the company said it swung to a profit in the first quarter, after reporting a loss a year ago. This would mark the second time in two weeks that Blink stock raced to the top of the Nasdaq.

BLNK shares have now added 50% in the past week, and have nearly filled their early-February bear gap. Since falling to a record low of $1.28 on April 26, the security has gained 474%. Shorts have begun jumping ship amid this meteoric rally, with short interest falling by nearly 20% in the most recent reporting period.

FDA Rejection Guts Evolus Stock

Evolus stock is down 23.5% to trade at $11.21 -- one of the worst stocks on the Nasdaq today -- after the biotech's rival treatment to Botox was rejected by the Food and Drug Administration (FDA). In response, Mizuho slashed its price target to $16 from $21.

EOLS stock is on pace for its worst single-day performance ever, yet remains far off its record low of $6.75, tagged just April 30. The shares are now back below their February IPO price of $12. Analysts remain committed to the biotech, though. All four of the brokerages covering EOLS rate it a "strong buy," and its average 12-month price target of $21.25 is nearly double its current price. 

 

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