Bull Notes Boost Snap Stock After Gaming Platform Reveal

BA options traders are eyeing a key technical level

Apr 5, 2019 at 2:34 PM
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The S&P 500 Index (SPX) is making its way to its longest daily win streak since October 2017 on the back of a strong jobs report. Among individual stocks making notable moves are 737 Max 8 maker Boeing Co (NYSE:BA), Snapchat parent Snap Inc (NYSE:SNAP), and gambling name Scientific Games Corp (NASDAQ:SGMS). Here's a quick look at what's moving the shares of BA, SNAP, and SGMS.

Boeing Reverses Lower After Reuters Report

Boeing stock started the session in positive territory, but has since swung down 0.9% to trade at $392.32, after a Reuters report pointed to a slowdown in 737 Max production if a global grounding of the aircraft, which was involved in two fatal crashes recently, continues much longer. A price-target cut to $500 from $525 at UBS is only adding to BA's woes.

The shares had been making headway since hitting a post-crash bottom of $361.53 on March 22 -- finding support at their 80-day and 120-day moving averages -- but have a ways to go before closing their March 11 bear gap. And just overhead the stock's current perch is the $400, currently home to its 40-day moving average.

Options traders have been eyeing this round level, too, with the April 400 call home to peak open interest of 11,742 contracts. Data from Trade-Alert indicates the bulk of these calls were initiated on March 12 and 13, though it's not clear if they were bought or sold.

Summit Insights, BAML Chimed in on Snap Stock

Snap stock is up 4.1% at $11.74, as bullish brokerage notes roll in following yesterday's Snap Games reveal, the company's new gaming platform. While Summit Insights upgraded SNAP to "hold" from "sell," BofA-Merrill Lynch boosted its price target by $2 to $12, saying "new initiatives may help add some new users ... and increase usage growth."

The social media stock is on pace for its highest daily close since Aug. 17, and is now up 114% year-to-date. More bull notes could come down the pike, should SNAP shares continue to outperform. Just two of 23 covering analysts maintain a "buy" rating on the security, while the average 12-month price target of $9.02 is well below current trading levels.

Scientific Games Stock Pops on IPO Buzz

The shares of Scientific Games are trading up 10.8% at $22.85, after the Las Vegas-based lottery company said SciPlay Corp, its social gaming subsidiary, has filed for an initial public offering (IPO). SciPlay will trade on the Nasdaq, under the symbol SCPL. SGMS is now headed toward its best day since Dec. 26, but remains 47% lower year-over-year.

Today's upside move is likely catching short sellers off guard. Short interest jumped 11.6% in the most recent reporting period to 10.12 million shares. This accounts for more than one-quarter of SGMS stock's available float, or seven times the average daily pace of trading.

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