Cara Therapeutics stock is higher on its phase 3 results
U.S. and China trade relations continue to weigh heavy on stocks today, guiding all three major indexes lower. A handful of names also making moves this afternoon are power conversion specialist Eltek Ltd. (NASDAQ:ELTK), biotech Cara Therapeutics Inc (NASDAQ:CARA), and California-based CalAmp Corp. (NASDAQ:CAMP). Below, we will dive into what is moving the shares of ELTK, CARA, and CAMP.
ELTK Stock Quadruples on Savings Plan
Eltek stock is surging just shy of 300%, trading at $6.43, and is fresh of an annual peak of $8.40, at last check. The power specialists' CEO Colin Howe said the company "identified the primary causes for. . . dramatic financial declines." Eltek outlined a $15 million annual savings plan, including a 20% cut in jobs, and upped its third- and fourth-quarter forecasts. The stock's long-term losses are evident in its 59% year-to-date deficit, but look to be easing off, with the equity set for its best day ever.
Cara Therapeutics Gaps Higher on Phase 3 Results
Also having a positive day is Cara Therapeutics, the stock last seen gapping 14.5% higher at $20.59. Positive topline results out of its pivotal phase 3 trial of KORSUVA injection for a common itching side effect, pruritus, is the backing behind today's surge, and also has also invited a slew of analysts to hand out bull notes.
Specifically, H.C. Wainwright, Stifel, and Jefferies have all handed out price-target hikes, to $28, $33, and $34, respectively. Coming into today, seven out of the eight brokerage firms following CARA had "strong buy" ratings, with not a single "sell" in sight. Plus, the stock's average 12-month price target of $29.50 comes in at a 43% premium to current levels.
CalAmp Sinks on Goldman Bear Note
Software application specialist CalAmp is down 10.3% at $10.92 at last check, tanking after Goldman Sachs cut the security to "sell" from "neutral." The firm cited "cyclical slowdown" in the company's truck and construction end-markets for the downgrade. CAMP has struggled to maintain positive ground this year, today sending it back below the $190 floor of support, touching an annual low of $10.87.
Something that may be of interest for CAMP traders is that short-term options on the security are attractively priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 41% ranks in the 27th percentile of its annual range, meaning near-term contracts are pricing in relatively low volatility expectations.