S&P 500's Newest Member Hits Fresh Highs

Meanwhile, CHWY stock slips post-earnings, and a public stock offering is sending PTCT stock lower

by Lillian Currens

Published on Sep 18, 2019 at 2:01 PM
Updated on Sep 23, 2019 at 9:44 AM

With all eyes on the Fed interest rate decision, stocks are tentatively lower at last check. Three stocks in particular making moves are technology solutions specialist CDW Corporation (NASDAQ:CDW), pet supply name Chewy Inc (NYSE:CHWY), and drugmaker PTC Therapeutics, Inc. (NASDAQ:PTCT). Below, we'll take a look at what's moving the shares of CDW, CHWY, and PTCT. 

CDW Joins S&P 500, Clocks New High 

Tech name CDW is soaring today, on news it will be joining the S&P 500 (SPX), replacing Total System Services (TSS), effective prior to the open on Monday, Sept. 23. The stock hit a new high of $122.20 earlier, last seen up 6.9% at $121.69.

Options players are taking notice. The equity's typically quiet options pits have seen 1,842 calls and 1,691 puts exchange hands so far -- 19 times what is usually seen at this point. The September and October 120 puts are most active, where new positions are being initiated. 

CHWY Stock Bites The Dust After Earnings

CHWY stock hit an all-time low of $27.38 earlier, following the company's second-quarter financial report. The company announced a loss of 21 cents per share -- more than its year-ago loss. Chewy cited transaction-related costs and a share-based compensation charge totaling $43.8 million for the bigger loss, but offered a current-quarter net sales forecast that topped analysts' consensus estimate. The stock is now down 8.5% at $27.67.

Jefferies and Instinet both issued price-target cuts, to $34 and $32, respectively, putting the consensus 12-month price target at $36.40 -- still a 32% premium to current levels. Seven of the 12 analysts in coverage call CHWY a "hold," while the five others say it's a "buy" or better, which could lead to more bear notes should this negative price action continue.  

PTCT Stock Down Big on Public Offering

PTC Therapeutics announced that it would be offering 2.5 million shares of its common stock at $40.40 per share -- a 6.7% discount to last night's close. The firm also said the net proceeds from the public offering will be used to fund its gene therapy and splicing programs. The stock is down 11.6% at $38.29, testing its footing at the 200-day moving average, and eyeing its biggest one-day drop since June 2018. 

The dip landed PTCT on the short-sale restricted (SSR) list today, and its options pits are busy with 4,341 puts and 1,942 calls across the tape so far -- 51 times the intraday average. The September 37 and December 30 puts appear to be the most popular, with fresh positions being initiated at both. 

Short sellers already had a firm grip on the stock, prior to today's slip, though. The 3.91 million shares sold short make up 9.4% of the stock's available float, and represent 8.4 times the average pace of trading. 

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