Chip Stock Surges to Record High After Earnings Beat

At least 13 brokerages have raised their LRCX price targets

Oct 24, 2019 at 3:00 PM
facebook twitter linkedin


The U.S. stock market is mixed today, as Wall Street sifts through a deluge of earnings reports. Among individual names making notable moves today is weed stock Tilray Inc (NASDAQ:TLRY), aircraft issue Aircastle Limited (NYSE:AYR), and semiconductor processing equipment specialist Lam Research Corporation (NASDAQ:LRCX). Here's a quick roundup of what's moving the shares of TLRY, AYR, and LRCX.

Tilray Rallies Into Familiar Resistance

Tilray stock is up 10.7% at $24.91, after the Canada-based firm said it is importing medical cannabis to the U.S. to support a clinical trial to treat patients with breast cancer. Today's pop hardly puts a dent in the equity's longer-term deficit, with TLRY still down 64.2% year-to-date. Plus, the security's 30-day moving average is continuing to serve as stiff resistance for the pot stock.

TLRY options traders are in overdrive today, too, with more than 39,000 contracts on the tape -- more than two times what's typically seen at this point in the session. The weekly 11/22 22.50-strike call is most active, and it looks like one speculator may be rolling their October 22 calls up and out to the weekly series.

M&A Buzz Boosts Aircastle Stock

Aircastle is near the top of the New York Stock Exchange today, after the Connecticut-based company said it is evaluating strategic options, including a potential sale. At last check, AYR stock is up 8% at $25.77, earlier hitting an 11-year high of $26.74. The shares are now up 49.5% in 2019, but the $26 level has served as a pesky ceiling in recent years. In fact, the last time AYR closed above here on a weekly basis was December 2007.

Against this backdrop, analysts have mostly stayed on the sidelines when it comes to Aircastle. While two brokerages say the stock's a "strong buy," the other six in coverage maintain a "hold" or worse rating on AYR. Meanwhile, the average 12-month price target of $22.60 is a 12.2% discount to the equity's current perch.

Analysts Rush to Raise Lam Research Price Targets

Lam Research topped out at an all-time peak of $262.33 earlier, and was last seen up 11.7% at $260.51. This comes after the semiconductor name reported fiscal first-quarter earnings of $3.18 per share, and gave a stronger-than-expected current-quarter profit forecast. A rush of bullish analyst notes have rolled in, too, with Credit Suisse raising its price target all the way to $300.

LRCX options volume is running quick, with more than 40,000 calls and puts on the tape -- five times the expected intraday amount, and volume pacing in the 98th annual percentile. The weekly 10/25 series is hot, as short-term traders take positions ahead of expiration at tomorrow's close. Slightly longer-term speculators appear to be buying to open the weekly 11/22 250-strike call, betting on bigger gains over the next month.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners