By Patrick Martin / October 13, 2017 / www.schaeffersresearch.com /
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U.S. stocks are slightly higher today, with the Dow and S&P 500 on track for their fifth straight weekly win. Online restaurant delivery service GrubHub Inc (NYSE:GRUB) and food stock Hostess Brands, Inc. (NASDAQ:TWNK) are mired in lower sessions, while steel stock Cleveland-Cliffs Inc (NYSE:CLF) is enjoying a breakout performance. Here's a quick look at what is moving shares of GRUB, TWNK, and CLF.
Facebook's Shadow Looms Over GRUB Stock
Facebook made headlines earlier today, announcing that it was launching a
food pick-up and delivery service in the United States. The news means the social media giant is now a direct competitor to GrubHub. GrubHub stock is down 0.3% to trade at $52.00, pulling back in recent weeks from its record high of $57.61 on Sept. 7. Nevertheless, the shares, which have tacked on 39% year-to-date, have found support at their 80-day moving average.
Analysts aren't ready to give up hope just yet. Of the 19 brokerages covering GRUB stock, 12 rate the shares a "buy" or "strong buy."
Hostess Brands Stock Gets Dreary Downgrade
Hostess Brands stock was downgraded earlier today by UBS to "sell" from "neutral," while also picking up a price-target cut to $11 from $16. Analysts cited the upcoming retirement of
CEO Bill Toler as reason for the downgrade. TWNK stock, which is currently short-sale restricted and among the worst Nasdaq performers today, is down 10% to trade at $12.04, its lowest level since last October. Short sellers are likely toasting Hostess' drop. Short interest has increased by 4% during the last two reporting periods to 12.18 million shares, which represents 15.5% of the stock's total available float.
Cleveland-Cliffs Stock Soaring Amid Kobe Steel Debacle
Cleveland-Cliffs stock is up 9.2% to trade at $7.47, among the best stocks on the New York Stock Exchange (NYSE) today, as steel stocks rise amid news that Kobe Steel had sold companies products that had failed certification. CLF stock, despite adding 39% year-over-year, has seen its 50-day moving average cap recent rally attempts.
Options traders are confident in the steel stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CLF boasts a 50-day call/put volume ratio of 3.55, which ranks in the 85th percentile of its annual range. This signals a stronger-than-usual preference for long calls over puts.