Best Nasdaq Stock Today Has Doubled

AABA is selling its 11% stake in Alibaba

Apr 3, 2019 at 2:58 PM
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The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are eyeing a fifth straight gain, thanks to semiconductor strength. Among individual stocks making notable moves are alternative energy name Ocean Power Technologies Inc (NASDAQ:OPTT), money transfer firm MoneyGram International Inc. (NASDAQ:MGI), and Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA). Here's a quick roundup of what's moving the shares of OPTT, MGI, and BABA.

Ocean Power Technologies Stock Set for Best Day in Years

Ocean Power Technologies stock has sailed to the top of the Nasdaq -- up 119.8% at $10.99, pacing for its best day since June 1, 2016 -- on news the company has inked a deal with a leading oil and gas operator to use its PowerBuoy system, which converts ocean waves into electricity. The shares are now set for their highest close since Nov. 9, and poised to end atop their 200-day moving average for the first time since October 2017.

MoneyGram Stock Pops on Rare Upgrade

Northland Capital upgraded MoneyGram to "outperform" from "market perform," and lifted its price target to $5.50 -- a 153% premium to yesterday's close at $2.17. The brokerage firm cited an attractive risk/reward setup, and called MGI stock "cheap" compared to its sector peers. In reaction, MGI stock is up 7.8% at $2.34.

This bullish note is relatively rare for a stock that's still down almost 72% year-over-year. At last night's close, all six covering analysts maintained a "hold" or worse rating. MGI has been a popular target for shorts, too, with short interest accounting for a healthy 5.4% of the equity's available float.

Alibaba Drops on Altaba Stake Sale

Alibaba stock was down as much as 2.7% earlier, but has since pared its loss to 1.6% to trade at $178.75. The Chinese stock is reacting to reports Altaba (AABA) is selling its 11% BABA stake as part of a board-approved liquidation plan -- a move Jefferies said could create a "near-term sentiment overhang on Alibaba's shares." The brokerage firm reiterated its "buy" rating, though, echoing the sentiment of 95% of covering analysts.

BABA options traders have been upbeat, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 2.60 ranks in the 90th annual percentile, indicating calls have been bought to open over puts at an accelerated clip.

Today, Alibaba calls are running at more than two times the average intraday pace, with about 121,000 contracts on the tape. The weekly 4/5 180-strike and 182.50-strike calls are most active, and data indicates new positions are being initiated here.

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