2 Stocks Making Massive Moves on Supreme Court Ruling

Avalara stock is trading at twice its IPO price, thanks to a ruling on online sales tax

Emma Duncan
Jun 21, 2018 at 3:31 PM
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Stocks are continuing their downward spiral this afternoon, with focus shifting to today's Supreme Court ruling that says online sales can now be taxed by states. Three individual stocks making noteworthy moves are tax software concern and Wall Street freshman Avalara Inc (NYSE:AVLR), e-tailer Overstock.com Inc (NASDAQ:OSTK), and drug stock Heron Therapeutics Inc (NASDAQ:HRTX). Below, we will take a closer look at how shares of AVLR, OSTK, and HRTX are trading on the charts.

Avalara Stock Soars During First Full Week of Trading

Avalara stock is soaring after the aforementioned tax ruling, up 12.8% at $50.78, at last check, fresh off an all-time high of $59.25. AVLR began trading just one week ago, after pricing its initial public offering (IPO) at $24, and since opening its first session at $35, has rallied roughly 45%. The tax software company is expected to benefit from new state sales tax laws for online retailers.

Shorts Pounced on OSTK Stock Ahead of Ruling

Shares of Overstock.com have plunged 6.8% to $36.30 on the Supreme Court ruling, though the company insists it "will have no appreciable impact on our business." OSTK has been on a sideways trend since announcing a stock offering in late March, with the shares struggling to climb back atop the round-number $40 level. From a longer-term perspective, the shares are down nearly 60% from their early January highs that stemmed from optimism surrounding the company's foray into blockchain.

Several short sellers are likely cheering today's Supreme Court decision. Short interest on Overstock currently accounts for more than 8 million OSTK shares, or nearly 50% of its total available float.

HRTX Gaps Higher on Positive Drug Data

In other news, drug concern Heron Therapeutics stock is up an 29% at $39.85 -- and fresh off a two-year peak of $42.05 -- after the Food and Drug Administration (FDA) granted "breakthrough therapy" status for the company's pain management drug, HTX-011, which just met the goals in two mid-stage studies.

In response to today's positive news, the stock received a price-target hike to $54 from $48 at Cowen and Company, and a hike to $51 from $38 at Jefferies. In addition, Cantor Fitzgerald weighed in on the upbeat news, saying it "supports our positive investment thesis and belief that the peak sales for HTX-011 are underappreciated." This positive analyst attention isn't unusual for the stock either, with all 11 following firms sporting "buy" or "strong buy" ratings.

Heron Therapeutics stock has been on fire in 2018, and now sports a year-to-date gain of 121%. What's more, the stock is on pace for its best session since late May 2015.


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