Francesca's and Lovesac are in rally mode after their latest quarterly reports
Stocks are making modest gains after Apple's (AAPL) product unveiling earlier today helped boost the tech sector. Three stocks making big moves today are retailer Francesca's Holdings Corp (NASDAQ:FRAN), drugmaker Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), and bean bag specialist Lovesac Co (NASDAQ:LOVE). Below, we'll take a look at what's driving the shares of FRAN, LXRX, and LOVE.
FRAN Hits Nine-Month High as Earnings Rally Rolls On
Women's clothing retailer Francesca's Holdings just hit a nine-month high of $14.88, extending Tuesday's gains after an upbeat second-quarter earnings report. Specifically, the firm posted a stronger-than-forecast adjusted profit and a slimmer decline in comparable-store sales. After more than doubling in value yesterday to close at $10.40 per share -- its biggest one-day percentage gain on record -- FRAN stock is up another 38.9% today at $14.44, pacing for its fifth straight daily win.
The stock is now trading back atop its 200-day moving average for the first time since September 2018, but it's still way below its year-ago pre-bear gap close atop the $70 region. Since that pre-earnings close of just over a year ago, FRAN stock has dropped nearly 80% -- and with a short interest ratio of just 2.5 days to cover, the post-earnings rally could soon taper off.
$260 Million Settlement Boosts LXRX Stock
The shares of biotech name Lexicon Pharmaceuticals are up 30% at $2.22 after settling with Sanofi SA over the diabetes treatment Zynquista, with Lexicon gaining worldwide rights to the drug and a $260 million payout from Sanofi for terminating the pair's partnership. LXRX stock hit a seven-week high of $2.71 earlier, and is now testing its footing atop its 40-day moving average -- a trendline it hasn't even touched since its late-July bear gap.
The typically quiet LXRX options pits are seeing a flurry of bullish activity as a result. So far, 4,137 calls have crossed the tape, which is 22 times the intraday average and roughly eight times the number of puts exchanged. The September 2 call is the most popular, where some speculators appear to be opening new positions.
Revenue Beat Boosts LOVE Stock
Lovesac stock is 13.2% higher at $20.84 at midday, after reporting an adjusted second-quarter loss of 31 cents, and $48.15 million in revenue, both of which beat analysts' estimates. The firm attributed these results to its reduced dependence on China, saying it hopes to pull all production from the country by the end of next year.
Now, LOVE is testing resistance at its 50-day moving average -- a trendline the stock hasn't closed above since suffering a massive bear gap after its last earnings report in June. The resulting sell-off sent the equity to an all-time low of $15.07 last week, and despite its recent bounce off this bottom, LOVE is still down roughly 9% year-to-date.
Analysts are surprisingly bullish on LOVE, considering its negative price action, with all five calling it a "strong buy." What's more, the consensus 12-month price target of $40.67 is approximately double current levels, and represents an area Lovesac hasn't touched since mid-May.