ALGN and XLNX Headline Earnings Losers

XLNX was testing the site of April's earnings gap

by Josh Selway

Published on Jul 25, 2019 at 10:51 AM

Corporate earnings keep pouring in, and two names making notable moves lower after quarterly reports are teeth straightening expert Align Technology, Inc. (NASDAQ:ALGN) and programmable chip producer Xilinx, Inc. (NASDAQ:XLNX). Here's the data you need to know for the shares of ALGN and XLNX this morning.

Align Technology was hit with at least six price-target cuts and a downgrade to "in line" from "outperform" at Evercore ISI. The company's quarterly results were better than anticipated, but it presented a questionable outlook for its flagship product Invisalign due to lower demand in China. The stock has already given back almost one-quarter of its value, last seen at $212.90, and is in danger of losing its year-to-date lead. 

Put traders were well positioned to profit off of a move lower like this, based on numbers from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The 10-day put/call volume ratio of 1.44 at those exchanges ranks in the 86th annual percentile, showing strong demand for long puts. Still, peak open interest sits at the August 350 call.

XLNX shares have already pared a large portion of their morning losses, though they're still down 2.4% at $128.95. The semiconductor concern's second-quarter results were in line with expectations, but its sales forecast disappointed due to continued headwinds around its relationship with Huawei. Coming into today, Xilinx shares were testing the site of their April bear gap, and options traders were expecting a sharp move.



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