Sally Beauty Stock Wipes Out on Amazon's Latest Announcement

NERV and KRYS, on the other hand, are scaling the Nasdaq on promising data

Lillian Currens
Jun 24, 2019 at 3:31 PM
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The Dow is trading higher today, but the upside is modest ahead of this week's big G-20 summit. However, several individual stocks are making big moves, including retailer Sally Beauty Holdings, Inc. (NYSE:SBH), as well as drug stocks Minerva Neurosciences Inc (NASDAQ:NERV), and Krystal Biotech Inc (NASDAQ:KRYS). Here's a look at what's moving the shares of SBH, NERV, and KRYS.

Put Traders Storm SBH Stock After Amazon Announcement

Amazon.com's (AMZN) newly unveiled online beauty store, marketed toward industry professionals, has slammed competing beauty retailer stocks today, including Ulta (ULTA) and Sally Beauty. Shares of the latter are 13.4% lower, trading at $12.80, and hit a new eight-year low of $12.47 earlier today. 

While SBH is heading towards its worst day in 10 months, the stock has been on a downward march since a post-earnings bear gap pushed it back below its 320-day moving average in early May, with recent added pressure from its 20-day trendline. What's more, SBH just landed on the short sale restricted (SSR) list. 

Unsurprisingly, options bears are coming at the security in droves. Almost 13,000 put contracts have crossed the tape so far, which is roughly 172 times what's typically seen, and clocks in at a new 52-week high. The brunt of this activity is centered at the July 10 put, where contracts are likely being sold to open. 

Promising Insomnia Drug Data Skyrockets NERV Stock 

Minerva stock more than doubled off Friday's three-year low of $4.07 earlier today, after the biotech announced its mid-stage trial for the drug seltorexant showed promising results in patients suffering with insomnia. The security has since pulled back some, now up 48.4% at $6.28, but is still near the top of the Nasdaq. 

Today's pop has NERV set to not only close above its 60-day moving average for the first since early April, but clock its biggest one-day jump in more than three years. This dramatic movement on the charts has options traders going crazy, with 4,200 contracts exchanging hands so far today, roughly 160 times the intraday average. While puts and calls are about even overall, the most popular contract by far is the July 5 put, where new positions are being bought to open. 

KRYS Stock Notches All-Time High After Promising Study Results

The shares of Krystal Biotech have staged a massive rally today, eyeing their fourth day in the black and clocking an all-time high of $43.50 earlier, after the firm revealed positive results from a mid-stage study of KB103, a gene therapy used to treat an oftentimes fatal skin condition called dystrophic epidermolysis bullosa. The stock is pacing for its best day ever, too, now 42.4% higher at $41.50. 

Looking back, the stock has seen a gradual climb during this past year, with shares recently contained in the $30-$36 neighborhood. KRYS saw a major drop earlier this month, but managed to rebound off its 100-day moving average. Today, the stock boasts a 177% year-over-year increase, and a 100% year-to-date rise. 

Despite the recent plummet, analysts are resoundingly optimistic on the equity, with all seven giving it a "buy" or better rating. Additionally, the consensus 12-month price target of $66.40 is at a hefty 61% premium to current levels. 


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