FDA Approval Sends SOLY Stock Soaring

KeyBanc slammed steel stocks today

Managing Editor
May 28, 2019 at 3:45 PM
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Blue chip Visa (V) is outperforming on the Dow today, while investors continue to digest President Donald Trump's trade comments. Three other stocks making moves this afternoon are Texas-based Soliton Inc (NASDAQ:SOLY), commodity name United States Steel Corporation (NYSE:X), and streaming concern Roku Inc (NASDAQ:ROKU). Below, we will dive into what is moving the shares of SOLY, X, and ROKU.

SOLY Stock Surges on FDA Approval

Shares of SOLY are up an unheard of 119% at $12.49 this afternoon, earlier coming within a penny of their all-time high of $15, after the company's "Rapid Acoustic Pulse" tattoo removal device received approval from the Food and Drug Administration (FDA). The news comes just days after it was rumored to be in line for receiving quick FDA approval. Soliton stock has already added 43% for the quarter, and today is at the top of the Nasdaq.

Steel Stock Sinks on KeyBanc Analyst Blow

United States Steel stock is down 2.8% at $13.79, and just off a nearly three-year low of $13.16 from earlier, after KeyBanc analyst Philip Gibbs said global production outside China will remain muted as international trends showcase "challenged global steel spread environment in 2019." X has already shed 27% year-to-date.

Short interest on U.S. Steel has increased 29% during the past two reporting periods, and now accounts for 13% of the stock's total available float. At the security's average pace of trading, it would take shorts just over two days to buy back their bearish bets.

Roku Falters on Analyst Bear Note

Meanwhile, streaming service ROKU is down 6.7% at $89.28, after brokerage firm Stephens slammed the equity with a downgrade to "equal-weight" from "overweight." The analyst note cited elevated expectations among investors, and also suggested the U.S.-China trade war could increase the price of streaming services -- though it acknowledged Roku was better positioned than some rivals. Prior to today's pullback, Roku touched a record high of $95.95 just last Friday, and remains 131% higher year-over-year.

Analysts were optimistic toward ROKU as of Friday's close, with nine of 16 covering firms sporting a "buy" or "strong buy" rating. Interestingly, however, the security's average 12-month price target of $79.24 comes in at a 10% deficit to current levels.


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