3 Stocks Down Sharply Today

USAT will restate several financial statements

by Karee Venema

Published on Feb 7, 2019 at 2:58 PM
Updated on Mar 12, 2019 at 12:25 PM

Stocks are staring at stiff losses following fresh U.S.-China trade news. Among individual names making big moves lower are ePort parent USA Technologies, Inc. (NASDAQ:USAT), biotech Sangamo Therapeutics Inc (NASDAQ:SGMO), and diagnostic testing specialist OraSure Technologies, Inc. (NASDAQ:OSUR). Here's a quick look at what's moving the shares of USAT, SGMO, and OSUR.

Sinking USA Technologies at Risk for Bear Notes

USA Technologies stock is trading down 52.9% at $3.24 -- fresh off a three-year low of $3.19 -- after RSM US LLC resigned as auditor of an internal investigation into the electric payments processor. The company's board will also restate financial statements for 2017 and 2018.

The stock is now down 80% from its Aug. 29 13-year high of $16.83, yet bullish analysts have yet to budge. All four covering brokerage firms maintain a "strong buy" rating on USAT, while the average 12-month price target sits all the way up at $9.25. A round of bear notes could exacerbate pressure on the shares.

Options Bulls Target Quick Bounce for Sangamo Therapeutics

Sangamo Therapeutics has plunged to a 21-month low of $6.26 earlier, last seen down 30.8% at $8.32. The company said an experimental gene therapy treatment treatment for Hunter syndrome didn't yield strong data.

The volatile price action has sparked heavy trading in SGMO's options pits, with around 14,000 calls and 8,200 puts on the tape -- six times what's typically seen, and put volume at a new annual high. Most active are the February 10 puts, where it looks like positions are being liquidated. Elsewhere, buy-to-open activity has been detected at the February 8 and 9 calls, which expire at the close next Friday, Feb. 15.

Weak Guidance Levels OraSure Technologies

OraSure Technologies reported better-than-forecast fourth-quarter profit and revenue last night, but the company predicted a surprise current-quarter loss and wider-than-anticipated drop in revenue. Jefferies cut its OSUR price target to $11 from $13.50 -- calling the guidance "alarming" -- with the stock last seen down 24.5% to trade at $9.68, earlier hitting a two-year low of $9.15.

Analysts have been mixed when it comes to OSUR stock. While the three brokerage firms in coverage maintain a lukewarm "hold" rating, the average 12-month price target of $12.67 is a 31.6% premium to the equity's current perch. More price-target cuts could come down the pike if the equity continues to struggle.

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