2 Stocks Getting Hammered After Earnings, Plus One on the Rise

By Emma Duncan / October 11, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are little changed this morning, with the lack of movement stemming from anticipation ahead of today's Fed meeting minutes release. Among the stocks making moves this morning are airliner Delta Air Lines, Inc. (NYSE:DAL), security and data solutions company Barracuda Networks Inc (NYSE:CUDA), and refrigerant services concern Hudson Technologies, Inc. (NASDAQ:HDSN). Here's a closer look at what's moving shares of DAL, CUDA, and HDSN.

Delta Earnings Surprise to the Upside

Shares of Delta Air Lines are higher after the company reported better-than-expected third-quarter earnings before today's opening bell. The airline stock is trading up 0.8% at $53.12, and is currently sporting a 35.3% year-over-year gain. DAL hit a record closing high of $55.48 back on July 12, and is now on track to retest that peak soon, following a 20% pullback through early September.

Despite the long-term positive price action, options players are favoring bearish bets. DAL's Schaeffer's put/call open interest ratio (SOIR) of 0.86 ranks in the 100th percentile of its annual range, suggesting the put skew among near-term options traders is at peak levels.

CUDA Gaps Lower as Earnings Take a Dive

Barracuda Networks reported adjusted second-quarter earnings that fell 36% year-over-year -- right in line with analysts' expectations, although the stock has plummeted 10.3% to $23.10 in response to the news. Today's bear gap has the stock on track to close below its recently supportive 40-day moving average for the first time since Aug. 29.

Ahead of earnings, CUDA options traders had grown increasingly bearish on the stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CUDA's 50-day put/call volume ratio of 0.63 ranks in the 90th percentile of its annual range, suggesting that puts have been bought-to-open at a faster-than-usual clip relative to calls during the past 10 weeks.

Hudson Hammered on Weak 3Q Outlook

HDSN was hit with two price-target cuts -- to $9 from $10 at Craig-Hallum, and to $7.50 from $10 at B. Riley -- after providing remarkably dismal preliminary third-quarter results following Tuesday's close. The refrigerant services stock is trading 12.3% lower at $6.64, and is hovering near six-month lows.

Short interest on HDSN is high, accounting for more than 12% of the stock's available float -- or 9.5 times the equity's average daily trading volume. While today's bear gap has short selling on Hudson Tech stock temporarily restricted, it's safe to say the shorts remain in control on this name.

Recent News

Uranium volatility after Russia's US export restrictions

November 25, 2024 / www.canadianminingreport.com

Gold stocks rebound on metal bounce and equity rise

November 25, 2024 / www.canadianminingreport.com

Crypto market size continues to catch up with gold

November 18, 2024 / www.canadianminingreport.com

Crypto stealing some of gold's thunder

November 18, 2024 / www.canadianminingreport.com

Gold stocks drop on metal price decline

November 11, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok