Funko Flops; CNQ Stock Slips on Pipeline Ruling

Plus, MoneyGram stock is rocked by a fraud settlement

Nov 9, 2018 at 2:36 PM
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The U.S. stock market is lower today, as oil prices head for a 10th straight loss. Among individual names making big moves are oil-and-gas issue Canadian Natural Resources Ltd (NYSE:CNQ), bobblehead maker Funko Inc (NASDAQ:FNKO), and money transfer provider MoneyGram International Inc (NASDAQ:MGI). Here's a quick roundup of what's moving shares of CNQ, FNKO, and MGI.

Keystone Pipeline Ruling Sinks CNQ Stock

Canada-based oil producers are in the red today, with a federal court ruling exacerbating selling pressure from crude's decline. Specifically, a U.S. judge today blocked construction of the Keystone XL pipeline that will carry oil from Canada to America, saying the environmental analysis "fell short of a 'hard look'" at the potential environmental ramifications. President Donald Trump called the decision "a disgrace."

CNQ stock was last seen 4% lower to trade at $27.83. The stock touched a two-year low of $26.90 on Oct. 30, but rebounded to start November following a well-received earnings report. However, that upward momentum stalled in the face of the security's declining 40-day moving average.

Despite Canada Natural Resources' problems on and off the charts, the majority of analysts remain bullish. In fact, 13 of the 16 brokerage firms following CNQ deem it worthy of a "buy" or better endorsement, leaving the door open for potential downgrades to drag the equity even lower.

FNKO Stock Set for Worst Day Ever

Funko stock is down 18.4% to trade at $16.27, set for its worst day ever, as traders pan the company's third-quarter gross margins. The margin concerns are overshadowing a third-quarter earnings beat and upwardly revised full-year forecast from the company. FNKO shares are now trading in territory not charted since early August, but remain north of their initial public offering (IPO) price of $12.

Ahead of earnings, options traders bought to open nearly nine FNKO calls for every put during the past two weeks on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). However, considering short interest rose 26% during the most recent reporting period -- and now accounts for nearly 40% of the equity's total available float -- it's possible that some of those calls may have been bought by FNKO shorts seeking an options hedge in the event of a post-earnings rally.

MoneyGram Falls to Record Low After Fraud Settlement

MoneyGram shares are down 40.3% to trade at $2.67, and are fresh off a record low of $2.55. The company reported earnings, and said it struck a deal with the Department of Justice and the Federal Trade Commission (FTC) to pay $125 million in penalties for failing to prevent fraudulent activity. The firm also said it expects full-year sales to fall 10%.

MGI stock has surrendered nearly 80% in 2018, with most rebound attempts halted by its 50-day moving average. Analysts at Evercore ISI expect even lower lows for the penny stock, downgrading it to "underperform" and slashing its price target to $2 from $6. Most analysts are already in the bears' camp, unsurprisingly; not one of the five brokerage firms following MGI considers it a "buy."

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