FBN Sets the Highest AMD Price Target on Wall Street

Geron and WageWorks stocks are also trading lower

by Karee Venema

Published on Sep 13, 2018 at 3:13 PM

The U.S. stock market is higher, fueled by gains in tech and trade optimism. Not all of the day's action is to the upside, though, with semiconductor name Advanced Micro Devices, Inc. (NASDAQ:AMD), biotech Geron Corporation (NASDAQ:GERN), and WageWorks Inc (NASDAQ:WAGE) stumbling. Here's a quick look at what's moving shares of AMD, GERN, and WAGE.

Advanced Micro Devices Stock Tagged a New High Earlier

Advanced Micro Devices shares hit a new 12-year high of $34.14 earlier after FBN Securities initiated coverage on the chip stock with an "outperform" rating and $40 price target -- the highest on Wall Street. AMD has since swung 3% lower to trade at $31.25, possibly amid a round of profit-taking. The stock has gained 56% over the past month, and its 14-day Relative Strength Index (RSI) is comfortably in overbought territory, last seen at 77.8.

Most analysts are already bullish on AMD stock, but considering nine of 19 brokerages still maintaining a "hold" or "sell" suggestion -- there's room for upgrades. Plus, the average 12-month price target sits at $21.98, allowing for additional price-target hikes.

JNJ Imetelstat Uncertainty Pressures Geron Stock

Geron stock topped out at four-year high of $6.99 out of the gate, but was last seen trading down 6.7% at $5.57. Pressuring the shares is a business presentation from Johnson &  Johnson (JNJ) earlier, which didn't provide details on the company continuing the development of GERN's Imetelstat. Just last month, GERN surged nearly 28% in one day after a JNJ job posting suggested the partnership would continue.

Today's pullback is finding a foothold atop GERN's 20-day moving average, and remains nearly 213% higher year-to-date. Speculators may be eyeing a top for the shares through year's end. Amid accelerated options activity today -- volume is running at nearly three times average intraday pace -- speculators appear to be selling to open the December 6 calls.

WageWorks Stock Heads Toward Lowest Close in Years

WageWorks received a round of bearish brokerage notes after the company announced the resignation of Executive Chairman Joseph Jackson and gave a disappointing full-year revenue forecast. While JMP Securities downgraded WAGE stock to "market perform" from "market outperform," Stifel and SunTrust Robinson cut their respective price targets to $55 and $56.

With about an hour left in today's trading, WageWorks shares are down 17.3% at $40.60 -- on track for their lowest close since January 2016. Should the stock continue to struggle, more bearish brokerage notes could come down the pike. The bulk of those covering the security still maintain a "buy" rating, while the consensus 12-month price target of $69 is a nearly 70% premium to current trading levels.

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