5MRD

Earnings Release Sparks Whipsaw Trading on Exelixis Stock

The drug concern cited strong sales of its cancer drug Cabometyx for the earnings beat

Digital Content Manager
Feb 13, 2019 at 10:29 AM
facebook X logo linkedin


The shares of Exelixis Inc. (NASDAQ:EXEL) shot higher out of the gate this morning, but were last seen down 0.7% at $21.53, even though the company reported fourth-quarter earnings and revenue that beat analysts' forecasts. The biopharmaceutical company cited strong sales of its cancer drug Cabometyx for the better-than-expected results. 

EXEL stock remains down roughly 25% year-over-year, though it's recovered some since bottoming near $14 back in late October. The security is up almost 10% this year already, with recent support from its 60-day moving average helping along the way. 

Meanwhile, six out of eight analysts call the stock a "buy" or better. However, RBC just cut its price target to $34 from $35, and Oppenheimer lowered its price target to $31 from $40. Overall, the consensus 12-month price target stands at $28.44. 

The majority of options traders have been bullish on the stock, too. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EXEL has a 10-day call/put ratio of 10.17 that sits in the 61st percentile of its annual range. This means that 10 calls have been purchased for every one put, and at a moderately faster pace than what is typically seen. 

 

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.  

👉 Sign up now to receive the next trade

MR content page
 
 
 
 

Follow us on X, Follow us on Twitter