Macy's Stock Jumps; Fitbit Flirts With 2018 Highs

A short squeeze could add fuel to FIT's fire

by Emma Duncan

Published on Jun 5, 2018 at 3:23 PM
Updated on Jun 5, 2018 at 4:49 PM

Stocks are modestly higher at midday, as tech remains in focus. Three names making notable moves in today's trading are retailer Macy's Inc (NYSE:M), athletic device maker Fitbit Inc (NYSE:FIT), and drug concern Regenxbio Inc (NASDAQ:RGNX). Below we will take a closer look at how shares of M, FIT, and RGNX have been faring on the charts.

Macy's Stock Reach Fresh High on Analyst Bull Note

Department store stock Macy's is trading 7.8% higher at $39.98, at last check -- and is fresh off an annual high of $40.28 -- after earlier this morning receiving a price-target hike from J.P. Morgan Securities to $41 from $35. The brokerage firm compared Macy's recent sales growth and the current economic backdrop to 2010, when the company embarked on a 13-quarter spree of positive sales comps. M stock is up nearly 90% in the past nine months, with help from the support of its 80-day moving average.

Sentiment has not been so optimistic in the options pits, however. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), show's M stock's 10-day put/call volume ratio at 1.34, ranking in the 92nd annual percentile. This lofty ratio suggests that puts have been purchased over calls at a faster-than-usual clip during the past two weeks. An exodus of option bears could translate into a tailwind for Macy's.

Fitbit Stock's Surge is Looking Bad for Short Sellers

Shares of Fitbit stock are up 8% to trade at $6.34 -- set for their highest close of 2018 -- after the company yesterday said it's already shipped more than 1 million Versa devices, a new product released in mid-April. The fitness concern also reported that 2.4 million users have already used its new female health tracker, which was released in May. The stock is now set for a second straight close atop its 200-day moving average, and has gained 27% over the past month.

This positive news isn't good for everyone, though, since the equity remains heavily shorted. Short interest represents almost 15% of the total float, which equates to over a week's worth of buying power, going by average daily volumes. A short squeeze could add fuel to FIT stock's fire.

RGNX Soaring on S&P SmallCap 600 Addition

Regenxbio stock is fresh off a record high of $57.30, last seen up 11% to trade at $55.75, on news the pharma concern will be joining the S&P SmallCap 600 Index. (This social media stock, meanwhile, will soon be an S&P 500 Index member.) RGNX has picked up nearly 200% year-over-year, and has more than doubled since April's bounce off the 200-day trendline.

Short interest on RGNX fell nearly 5% during the most recent reporting period, but still represents more than 9% of the stock's total available float. At Regenxbio stock's average daily trading volume, it would take shorts nearly a week to cover their bearish bets. 

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