3 Stocks Selling Off Today

MYGN and TLYS hit new highs just yesterday

by Karee Venema

Published on Sep 5, 2018 at 2:53 PM

It's a mixed trading day on Wall Street, with the tech sector lagging on regulatory concerns. Among individual stocks making volatile moves are genome editing firm Sangamo Therapeutics Inc (NASDAQ:SGMO), molecular diagnostic specialist Myriad Genetics, Inc. (NASDAQ:MYGN), and retailer Tilly's Inc (NYSE:TLYS). Here's a quick look at what's moving shares of SGMO, MYGN, and TLYS.

Sangamo Therapeutics Stock Eyes Worst Day in Two Years

Sangamo Therapeutics stock is spiraling today, after the company reported data for its trial of a gene editing candidate for rare metabolic disorder Hunter Syndrome. At last check, SGMO stock was down 21.1% at $15.05 -- on track for its worst day since Aug. 4, 2016.

Since topping out at a 17-year peak of $27.50 in February, the security has shed 45% -- with the $19-$20 region containing all rally attempts since April. In fact, SGMO stock topped out at an intraday high of $19.05 yesterday.

The underperforming equity is at risk for bearish brokerage notes, too. While six of the seven brokerages covering Sangamo stock maintain a "strong buy," the average 12-month price target of $27.67 is an 85% premium to current trading levels.

Barclays Downgraded Myriad Genetics Stock

Barclays downgraded Myriad Genetics stock to "underweight" from "equal weight," and slashed its priced target by $8 to $30 -- a 40% discount to last night's close -- saying Wall Street isn't pricing in risks within the diagnostic sector. In reaction, MYGN shares are down 7.9% at $46.38.

Just yesterday, Myriad Genetics tagged a 17-year high of $50.44, and is still maintaining a 34.6% year-to-date lead. Plus, the shares appear to be finding a foothold near $45, which is home to their early August highs.

Some of the stock's longer-term upside was likely given an assist from short sellers, with short interest down 25% since the start of the year. However, the 9.94 million MYGN shares still sold short account for a healthy 15.3% of the equity's available float, or 15.7 times the average daily pace of trading.

Tilly's Stock Sinks as Co-Founders Sell Shares

Tilly's stock has plunged 14.2% to trade at $21.55, after several of the retailer's top stakeholders -- including co-founders Hezy Shaked and Tilly Levine -- agreed to sell 8.1 million shares in a public offering. This marks a sharp reversal for TLYS, which surged 18% from its Aug. 29 close at $18.00 to yesterday's record high of $25.43, thanks to a positive earnings reaction. Plus, the shares have more than doubled year-over-year.

Options traders are blasting the retail stock amid today's retreat. Roughly 2,242 puts have changed hands so far -- a new annual peak -- compared to 772 calls, with total options volume running at seven times the intraday average. Traders appear to be buying the September 20 puts to open for a volume-weighted average price of $0.41, making breakeven at front-month expiration $19.59 (strike less premium paid).


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