2 Retail Stocks Popping on Earnings Beats
CHS and CASY just reported quarterly earnings and revenue that beat analysts' estimates
The Dow is higher today, set for a seventh straight win. Three names to watch today are women's clothing specialist Chico's FAS, Inc. (NYSE:CHS), drugmaker Insys Therapeutics Inc (NASDAQ:INSY), and convenience store operator Casey's General Stores Inc (NASDAQ:CASY). Here's what's moving the shares of CHS, INSY, and CASY.
Chico's Stock Pops Post-Earnings
Chico's is pacing for its best day since February 2018 today, after unveiling first-quarter earnings and revenue that came in higher than analyst expectations. While the White House Black Market parent also reported a same-store sales miss, the shares managed to hit a new one-month high atop the $4 region earlier today. The stock has pared back some of its earlier gains, up 11.7% to trade at $3.81 -- poised to close above its 50-day moving average, which has acted as a ceiling on the charts of late -- for the first time since early March.
With CHS just recently bottoming out at 10-year lows in late May, it's no surprise that analysts are still skeptical on the retail stock. The equity holds seven tepid "hold" or worse ratings, compared to only one "strong buy." Just today, Jefferies lowered its price target to $4 from $6.
INSY Stock Crashes to Fresh Low After Nasdaq Delisting
The biotech name INSY plummeted to an all-time low of $0.20 earlier today, down 68%, after the Nasdaq announced plans to delist the stock after the firm filed for bankruptcy protection. Insys stock has been under pressure since the Justice Department filed a lawsuit against the drugmaker, accusing it of bribing doctors to prescribe powerful opiod medicine. The Nasdaq delisting comes just days after INSY agreed to a $225 millionsettlement.
Naturally, short interest on INSY is through the roof, with the 11 million shares sold short representing a whopping 42.3% of the stocks available float and nearly nine days' worth of buying power, at the equity's average pace of trading. While short sellers would be celebrating the pharma name's most recent drop, INSY has been put on the short-sale restricted (SSR) list today.
CASY Stock Hits All-Time High on Profit Beat
Shares of CASY just hit a fresh high of $149.98 earlier today, before paring some of their gains. The equity is now eyeing its best day in over nine years, up 11.4% at $148.23 after the company's fourth-quarter earnings and revenue came in atop analysts' estimates.
The surge has options traders storming in, with call volume sitting in the 99th percentile of its annual range. So far, 3,010 calls have crossed the tape, which is 47 times what's normally seen. The June 155 call is by far the most popular, with most of these contracts being sold to open, with the majority of traders speculating on the underlying stock trading beneath the $155 until the contract's expiration on June 21.