Downgraded Roku Stock Tests Key Technical Level

TGI is headed toward a 10th straight win

by Karee Venema

Published on Feb 11, 2019 at 2:52 PM

The U.S. stock market is mixed as oil prices drop. Among individual names making notable moves are streaming issue Roku Inc (NASDAQ: ROKU), electric car concern Tesla Inc (NASDAQ:TSLA), and aircraft components maker Triumph Group Inc (NYSE: TGI). Here's a quick roundup of what's moving the shares of ROKU, TSLA, and TGI.

Roku Options Bulls are Sticking Around

Vertical Group downgraded Roku stock to "negative from "mixed," sending the shares down 3.4% to trade at $46.61. The equity earlier found a foothold near $45.74 -- home to its Nov. 8 bear gap close, as well as a 38.2% Fibonacci retracement of its fourth-quarter sell-off. However, just above is ROKU's 200-day moving average -- currently perched near the round $50 mark -- which has contained the security's early 2019 upside.

ROKU shares are still up 57.5% year-to-date, and options traders are optimistic. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 5.10 ranks in the 92nd annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

Tesla Stock Upgraded to "Buy"

Tesla stock was upgraded to "buy" from "hold" at Canaccord Genuity, with the brokerage firm also raising its price target to $450 from $330 -- a 47% premium to last Friday's close. The brokerage firm expects electric vehicle market share to account for 50% of vehicles by 2030, and said TSLA's "EV penetration story is underappreciated by the Street."

This marks a change of pace from recent Tesla analyst attention -- with the majority in coverage maintaining a "hold" or worse rating -- and is offsetting a Securities and Exchange Commission (SEC) filing that showed T. Rowe Price (TROW) cut its TSLA stock to 5.2% from 10.1%. The stock is up 2.7% at $314.02, though the gains are being capped by TSLA's 180-day moving average, which has kept a tight lid on the shares since a mid-January bear gap.

Triumph Group Stock Reacts to Double Upgrade

Triumph Group stock is trading 4.7% higher at $22.66 -- on track for its 10th straight win, and fifth consecutive close above its 180-day moving average -- as a double upgrade to "buy" from "underperform" at Bank of America-Merrill Lynch (BAML) overshadows a downgrade to "market perform" from "outperform" at Cowen and Company. BAML waxed optimistic on the company's cost-cutting efforts following the recent sales of its jet-making and fabrications units.

TGI stock's extended rally is likely weighing on short sellers. Short interest jumped 4.9% in the most recent reporting period to 6.97 million shares. This represents 14.3% of the security's available float, or 9.2 times the average daily trading volume.

 


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