Stocks are trading higher this afternoon, as traders digest big-cap tech earnings and the nonfarms payroll report for October. Online mailing and shipping company Stamps.com Inc. (NASDAQ:STMP), rent-to-own supplier Rent-A-Center Inc (NASDAQ:RCII), and national security technology and supply concern Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) are making big moves. Here's a quick look at what's moving shares of STMP, RCII, and KTOS.
Shares of STMP are lower, after the company's revenue forecast failed to meet expectations, overshadowing a third-quarter earnings beat. The stock gapped 20% lower to $175.92 -- a 25% drop from its Oct. 26 record high, and in territory not charted since an early August bull gap. Despite itsfall, the online shipping concern still sports a 53% year-to-date gain, but could be vulnerable to analyst downgrades. All five analysts following STMP carry "strong buy" recommendations.
Rent-A-Center stock is trading higher, after the company confirmed that Vintage Capital Management proposed to buy it for $13 per share. The proposal sent shares of RCII up 10% to $10.99 at last check, and propelled its year-over-year gain to nearly 5%. Still, the stock has dropped 21% since its early August high, which happened after Rent-A-Center rejected a higher, $15-per-share bid from Vintage Capital.
Options traders have been put-heavy towards RCII recently, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing its 10-day put/call volume ratio at 10.26. Ranking in the 83rd percentile of its annual range, this high ratio suggests that puts have been bought to open over calls at a faster-than-usual clip during the past two weeks.
Kratos reported third-quarter earnings that matched estimates. Nevertheless, KTOS stock was last seen 3.3% lower at $11.58, and has explored a wide range on both sides of breakeven today. Meanwhile, Jefferies raised its price target on KTOS stock to $13 from $12.70. The equity has taken a breather since touching an annual high in early September, but still remains up over 90% year-over-year, and could find an ally in its 160-day moving average, which has contained pullbacks over the past year.
Quite a few short sellers could be cheering today. Short interest represents 12% of Kratos stock's total available float, or more than a week's worth of pent-up buying demand, at the security's average daily trading volume.