E-Cig Ban Stubs Out This Tobacco Stock

Care.com's CFO announced his resignation, sending CRCM shares reeling

by Lillian Currens

Published on Jun 26, 2019 at 2:12 PM

The Dow is higher on the latest trade comments. Several individual stocks are on analysts' radar today, too, including caregiver concern Care.com Inc (NYSE:CRCM), data storage name Western Digital Coporation (NASDAQ:WDC), and Altria Group Inc (NYSE:MO). Here's a look at what's moving the shares of CRCM, WDC and MO.

Care.com Stock Eyes Worst Day Ever After CFO Resignation

Care.com stock has hit the bottom of the New York Stock Exchange (NYSE), after CFO Michael Echenberg announced his resignation, which will go into effect at the end of August. V.P. of Finance Michael Goss will likely serve as acting CFO. CRCM stock is set for its worst day on record, down 20% at $11.28, and hit a two-year low of $10.89 earlier today.

Craig-Hallum has already slammed the stock with a downgrade, too, cutting its rating to "hold" from "buy" and its price target to $15 from $18. BTIG analysts, meanwhile, said the CFO exit "raises a red flag." While most analysts are already cautious of the stock, with four "hold" or worse ratings on the table, two still consider it a "strong buy." Plus, the consensus 12-month target price of $177.67 represents a 53.4% premium to current levels, leaving CRCM vulnerable to even more negative attention from the brokerage bunch. 

WDC Stock Gets a Halo Lift With Chip Stocks 

Western Digital is enjoying a halo lift with other semiconductor stocks, on sector peer Micron's (MU) impressive quarterly earnings report. WDC got an upgrade from Craig-Hallum, too, which lifted its recommendation to "buy" from "hold," and raised its price target to $54 from $49. WDC is up 7.9% at $44.33, in response, set to close well above its 40-day moving average for the first time in almost two months. 

WDC's pop has options bulls coming out in droves. So far 61,000 call contracts have changed hands -- five times the average intraday call volume, and more than double the number of puts traded. Most active is the January 2020 55-strike call, followed by the July 37.50 call, with positions likely being bought to open here. 

Altria Stock Slips Amid San Francisco Vape Ban 

A newly approved ban on e-cigarette sales in San Francisco had shares of MO hitting a six-month low of $47.62 earlier. Cowen & Co rushed to comment on the new ban, saying it was unlikely similar laws would spread to other cities soon.

Nevertheless, the equity is down 1.8%, trading just below recent support in the $48 region, extending its channel of lower lows in place since early April. MO is now back below its year-to-date breakeven, too, and is down 14.8% year-over-year.

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