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Shopify Sells Off After Earnings; Underwear Stock Surges

Castlight Health is one of the worst stocks on Wall Street today

Jul 31, 2018 at 2:31 PM
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Stocks are getting a boost today thanks to positive reports on U.S.-China trade talks. Meanwhile, three names in particular making big moves are e-commerce services provider Shopify Inc (NYSE:SHOP), healthcare issue Castlight Health Inc (NYSE:CSLT), and underwear specialist Naked Brand Group Ltd (NASDAQ:NAKD). We'll take a closer look at how shares of SHOP, CSLT, and NAKD are trading today below.

SHOP Stock Falls Below Chart Support

SHOP shares are sinking today, as traders focus on slowing gross merchandising volume (GMV) for the second quarter, instead of a surprise adjusted profit for the period. At last check, the stock was down 4% at $142.12, giving up support at the 80-day moving average and set for the lowest close since May. The equity is still up almost 41% in 2018, however, and Canaccord Genuity isn't shying away, earlier upping its price target to $165 from $160 and reaffirming its "buy" rating.

In the options pits, traders had been betting bearishly ahead of earnings. This is indicated by Shopify's 10-day put/call volume ratio of 1.11 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 74th annual percentile. In other words, there was a rare tilt toward put buying in recent weeks.

CSLT Nosedives After Walmart Cuts Ties

Castlight Health stock is getting demolished today, down 27.5% at $3.22, making it one of the top losers on the New York Stock Exchange (NYSE). The company announced a restructuring plan to lower costs, but more importantly said Walmart has ended the companies' six-year relationship. Just a week ago the shares were trading near $6, but they're now just pennies from a new 52-week low.

In response, Canaccord Genuity lowered its price target on CSLT to $6 from $7. There's a chance more analysts react negatively, too, since 60% of those covering the equity have "strong buy" or "buy" ratings.

CVS Deal Lifts NAKD Stock

Meanwhile, NAKD stock is near the top of the Nasdaq, after the company inked a deal with CVS Health to feature the company's Bendon underwear line in more than 4,000 stores. Naked Brand shares were last seen trading up more than 41% at $5.85, though this still leaves them well below their 52-week high of $11.36. At the same time, the stock is set for its first close above the 20-day moving average since the company completed its merger with Bendon last month.

 

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