Mallinckrodt Shorts Cheer Stock's Latest Slide

MNK stock hit a record low earlier

Aug 27, 2019 at 3:04 PM
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The U.S. stock market has erased its earlier lead on renewed U.S.-China trade tensions. Among individual names making volatile moves are burger chain Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), generic drugmaker Mallinckrodt PLC (NYSE:MNK), and software solutions firm SilverSun Technologies Inc (NASDAQ:SSNT). Here's a quick look at what's moving the shares of RRGB, MNK, and SSNT.

Red Robin Stock Sinks After Downgrade

Red Robin Gourmet Burgers stock is down 6.8% at $32.07, after BofA-Merrill Lynch downgraded the shares to "underperform" from "neutral." The brokerage firm thinks the company will fall short of consensus expectations in 2020.

This follows RRGB's well-received earnings report from Friday, with the company beating adjusted earnings and revenue estimates in its second quarter -- sending the security up 5.9%. That surge had the stock rallying into the $35-$36 region, which has kept a lid on the shares since an Oct. 19 bear gap.

There's plenty of skepticism priced into RRGB. While nearly 31% of its float is sold short, its 10-day put/call volume ratio of 3.25 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) registers in the 78th annual percentile. In other words, puts have been bought to open over calls at a quicker-than-usual clip.

Mallinckrodt Stock Shorts Stay in Control

Mallinckrodt stock hit a record low of $3.53 earlier, last seen down 15.4% at $3.57. This comes after a U.S. Court of Appeals in Delaware upheld a previous ruling that said Praxair did not infringe on MNK's patents for the respiratory treatment system, Inomax.

It's been a steady slide for MNK shares, down 90% year-over-year. Short sellers have been firmly in control amid this sell-off, too. Short interest is up 74% year-over-year to a record-high 42.72 million shares -- more than half the security's available float.

SilverSun Technologies Stock Soars After Mapadoc EDI Sale

SilverSun Technologies has jumped 48.4% to trade at $3.72, earlier tagging a new four-year high of $8.25. The burst of buying power comes after the New Jersey-based firm said its SWK Technologies unit is selling its proprietary software Mapadoc EDI division. SSNT CEO Mark Meller said the sale "gives us the resources to rapidly accelerate our growth plans."

 

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