SRPT stock is at its highest level since late September
Stocks are trading lower today after U.S. Trade Representative Robert Lighthizer's congressional testimony. Among individual names making notable moves are drugmakers Sarepta Therapeutics Inc (NASDAQ:SRPT) and Jazz Pharmaceuticals PLC (NASDAQ:JAZZ), as well as nutritional supplements retailer GNC Holdings Inc (NYSE:GNC). Here's a quick look at what's moving the shares of SRPT, JAZZ, and GNC.
Sarepta Therapeutics Jumps After Myonexus Therapeutics Buyout
Sarepta Therapeutics stock is up 9.7% to trade at $153.65 today, after the company exercised a buyout option for Myonexus Therapeutics Inc and reported positive data for the biotech's limb-girdle muscular dystrophy (LGMD) gene therapy treatment. SRPT shares are now up almost 41% year-to-date, and have erased their fourth-quarter loss.
Nevertheless, the weekly 3/1 135-strike put is most active today, and it looks like new positions are being purchased here. While it's possible some of the activity here is a result of traditional bearish betting, it could also be due to shareholders protecting paper profits with an options hedge.
BMO Set a Lofty Jazz Pharmaceuticals Price Target
Jazz Pharmaceuticals last night reported adjusted fourth-quarter earnings of $3.64 per share, more than analysts were expecting. In response, the shares were last seen up 9.1% at $139.37.
Analyst reaction has been mostly bullish. BMO boosted its price target to $206 from $199 -- a 61% premium to last night's close -- and Cantor Fitzgerald reiterated its "overweight" rating and $185 price target, waxing optimistic on the company's hemo/oncology business and soon-to-expire share buyback program. H.C. Wainwright, on the other hand, cut its JAZZ price target to $153 from $161.
Overall, most analysts are upbeat toward JAZZ stock, with 12 of 15 maintaining a "buy" or better rating, and not a single "sell" on the books. Plus, the average 12-month price target of $172.61 stands at a 24.3% premium to current trading levels.
GNC Stock Bucks Weight Watchers Headwinds
GNC stock is shrugging off stiff headwinds from Weight Watchers (WTW), trading up 3.5% at $3.29. This bring's the equity's week-to-date gain to 12%, with yesterday's 6% pop fueled by a positive earnings reaction for Vitamin Shoppe (VSI). However, GNC is running out of steam at its 200-day moving average, which hasn't been toppled on a closing basis since Nov. 9.
Options are running hot, with 5,130 puts and 1,250 calls traded -- four times what's typically seen. The March 5 put has seen the heaviest volume, and it looks like new positions are being bought for a volume-weighted average price of $1.65. If this is the case, breakeven for the put buyers at the close on Friday, March 15, is $3.35 (strike less premium paid).