IQ Stock Slide Deepens; ELF Pops on Takeover Talk

ELF stock had suffered a huge losing streaking coming into today

Jul 2, 2018 at 1:41 PM
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The Dow is falling on the first trading day of the third quarter. Three stocks making noteworthy moves are Chinese streaming service iQIYI, Inc (NASDAQ:IQ), cosmetic company e.l.f. Beauty Inc (NYSE:ELF), and pharma name Adamis Pharmaceuticals Corp (NASDAQ:ADMP). Below, we will take a closer look at how shares of IQ, ELF, ADMP are trading on the charts.

IQ Shareholders May Have Hedged Ahead of Pullback

The global trade drama is again weighing on IQ stock, which was last seen down 1% at $32. It's been nothing but downside since the equity briefly popped above $46 two weeks ago, and the shares are pacing for a fourth straight close below the 20-day moving average. On the other hand, it's hard to ignore iQIYI's bounce off the $30 mark last Thursday, a round-number region that's roughly double the stock's all-time low. Regardless, many IQ shareholders could already be hedged with put options, since the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.45 shows a healthy put skew among near-term options traders.

M&A Hopes Give ELF Stock Life

Shares of e.l.f. Beauty had suffered 10 straight losing sessions before today, but are now trading up 5.6% at $16.10, thanks to a bullish reiteration at D.A. Davidson. An analyst at the firm said the stock is still a "buy," citing ELF's appeal as a takeover target and its recent expansion into Walgreens stores. The note names Unilever (UN), Coty (COTY), and Revlon (REV) as potential suitors.

The recent struggles are nothing new for ELF, which has been in a downtrend since hitting an all-time high of $32.54 back in November 2016. But from a technical standpoint, the security may have been due to bounce, since its 14-day Relative Strength Index (RSI) was all the way down at 19 by Friday's close -- deep into oversold territory.

ADMP Stock Jumps Into Technical Ceiling

Adamis Pharmaceuticals stock is trading 36.7% higher at $4.38, after the company announced a distribution agreement with Novartis (NVS) for the U.S. commercial rights to Symjepi, its EpiPen competitor. Brokerage firm Maxim responded by upping its price target on ADMP stock to $13 from $10, and Raymond James lifted its own target to $8.50 from $6.40. H.C. Wainwright, meanwhile, hiked its target to $10 from $7, saying the deal has Symjepi well-positioned to compete with Mylan's (MYLN) blockbuster Epipen.

Still, Adamis shares again topped out in the $4.80-$5.00 region earlier, which has acted as a stiff ceiling since December. Chart watchers should also note the $4.40 price point, home to the security's year-to-date breakeven mark.

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