Options traders are swarming AXTA and JBL stocks
Stocks are floating above breakeven, with all eyes turned towards the Fed's decision to hold rates steady. Three other stocks capturing investors' attention today are vehicle coating concern Axalta Coating Systems Ltd (NYSE:AXTA), marijuana name CannTrustHoldings Inc (NYSE:CTST), and electronic manufacturer Jabil Inc (NYSE:JBL). Here's a look at what's affecting AXTA, CTST and JBL shares.
AXTA Shares Eye Best Day in Years On Potential Sale
The coating manufacturer, AXTA, is near the top of the NYSE today after the company said it has started a comprehensive review of strategic alternatives, including a potential sale. The stock is eyeing its best day since 2017, and its highest close in nine months -- up 14.5% at $29.55 at last check. What's more, AXTA is trading well above its 320-day moving average, which has acted as an area of pressure for the stock, for the first time in a year.
Today's pop has options traders going wild. The typically quiet options pits have seen 5,428 calls and 1,337 puts exchange hands so far today, 38 times what's normally seen, and in the 96th percentile of its annual range. Most of the action is converging around the July 30 call and the June 30 call, which were both home to heavy open interest coming into today.
CTST Stock Makes a Rebound on U.S. Pot Deal
The Canada-based CannTrust Holdings announced today that it signed an agreement with Elk Grove Farming giving the firm access to over 3,000 acres of land to cultivate hemp, giving each firm 50% ownership. The pot concern, which also predicted its investment to gain $20 million by the end of 2020, is up 8.3% at $5.34 -- pacing for its biggest one-day jump since February.
Looking back, CTST just bottomed out at a five-month low of $4.87 late last week, following a sharp decline off its peak just atop the $10 region in March. While the stock saw a brief rally higher last month, nearly closing its early May bear gap, stiff resistance from the 20-day moving average kept the shares in check. Today, however, the stock is trading north of here, and could clock its first close in months atop the trendline.
Fourth Quarter Revenue Forecast Gives JBL Stock a Boost
JBL was trading right under its one-year highs at $30.44 earlier today, after unveiling third-quarter earnings that fell in line with analysts' expectations and a revenue beat. The firm also foretasted an increase in revenue for its fourth quarter, predicting a "robust demand in 5g/wireless, cloud, industrial, healthcare and packaging." The shares are eyeing their best day in over two years, up 9.5% at $29.91.
The surge has the brokerage bunch paying attention. Citigroup lifted its price target to $27 from $26, and others could be following suit soon, especially considering the consensus 12-month target price is just out of reach, at $32. There's room for upgrades too, with two of the four analysts following the stock giving it a tepid "hold" rating.
Options traders are taking notice, too. with 5,155 calls and 2,647 puts exchanging hands so far, eight times the intraday. The June 28 call is the post popular, followed by the weekly 6/28 27.50-strike put, where positions are likely being sold to open.