Dolan Comments Lift MSG Stock; 2 Big Healthcare Movers

A CEO shake-up has Acadia Healthcare shares reeling

Dec 17, 2018 at 3:33 PM
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It's shaping up to be another down day for the U.S. stock market. Three stocks in the news are Madison Square Garden Co (NYSE:MSG), drugmaker Proteostasis Therapeutics Inc (NASDAQ:PTI), and behavioral sciences specialist Acadia Healthcare Company Inc (NASDAQ:ACHC). Here's why shares of MSG, PTI, and ACHC are making big moves today.

Knicks Sale Talk Lifts MSG Stock

The shares of MSG are up 2.3% today at $267.44, after CEO James Dolan told ESPN he would consider selling the Knicks at the right price if it were the right thing to do for shareholders. Dolan suggested some have valued the Knicks franchise at $5 billion, but confirmed there are currently "no plans" to sell the team.

Madison Square Garden stock had been grinding steadily lower since its all-time high of $330 from July, and hasn't traded above its 80-day moving average since early October. Still, the equity is pacing to close 2018 with a 26.5% lead. On the sentiment side of things, 80% of analysts in coverage have a "strong buy" rating on MSG.

PTI Shares Cool After Genentech Deal

PTI stock is trading up 0.6% at $4.83 -- and earlier peaked at $5.80 before cooling off -- as Wall Street digests the company's new agreement with Roche's Genentech. As part of the deal, PTI Therapeutics will receive more than $100 million in upfront payments and royalties, and could wind up getting more based on the sales performances of certain drugs.

A bull gap sent PIT shares up to $10.38 on Oct. 18, after the company's positive data on a cystic fibrosis treatment, but since then they've struggled to gain momentum. That may be why options traders have been showing bearish tendencies recently, with put buying more than doubling call buying during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

New Lows for Acadia Healthcare Stock After CEO Change

ACHC stock hit a nearly six-year low earlier of $26.68, and was last seen down 5.6% at $27.30, after the company's board gave the boot to Chairman and CEO Joey Jacobs, with the latter position being filled by Debbie Osteen from Universal Health Services (UHS). Brokerage firms William Blair and Jefferies each said they were surprised by the C-suite change, but suggested it could indicate the company is moving toward a sale. Acadia Healthcare shares have been decimated in recent months, declining from a Nov. 2 peak above $45 to today's fresh low. In the meantime, short sellers have been taking profits, as short interest dropped by 20.4% in the past two reporting periods.


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