Sanmina Shorts Took Profits Too Early

By Karee Venema / January 22, 2018 / www.schaeffersresearch.com / Article Link

U.S. stock markets are back at record highs, after the Senate voted to pass a short-term funding bill, which will end the three-day government shutdown. Among individual stocks making big moves are cancer specialist bluebird bio Inc (NASDAQ:BLUE), casino operator Wynn Resorts, Limited (NASDAQ:WYNN), and semiconductor services provider Sanmina Corp (NASDAQ:SANM). Here's a quick look at what's moving shares of BLUE, WYNN, and SANM.

Bluebird Bio Stock Jumps With Juno Therapeutics

Bluebird bio stock has gapped 15.5% higher to trade at $198, boosted by M&A-related tailwinds from sector peer Juno Therapeutics (JUNO). This positive price action is just reflective of BLUE's longer-term strength, with the shares tripling in value on a year-over-year basis. And while the equity has recently pulled back from its Dec. 11 record high, bluebird bio's rising 60-day moving average has emerged as support.

Short sellers have been closing out of their losing bets, too, with these bearish bets down 22.4% in the two most recent reporting periods. Considering it would take BLUE shorts more than a week to cover the remaining shares, at the average pace of trading, the stock stands to benefit from more sideline cash.

Wynn Resorts Earnings Send Shares to New High

Wynn Resorts reported fourth-quarter earnings of $1.40 per share on revenue of $1.69 billion, stronger than analysts had forecast. In reaction, WYNN stock has shot up 8.3% to trade at $194.53 -- earlier tagging a three-year high of $194.84, and on track for its seventh straight win.

WYNN shares are now up almost 113% year-over-year, and bullish brokerage notes could follow. While six of 13 analysts still maintain a lukewarm "hold" rating on WYNN, the average 12-month price target of $172.87 stands at a discount to current trading levels.

Analysts Chime In After Preliminary Sanmina Earnings Disappoint

Sanmina stock plunged to a 14-month low of $26.65 earlier, and was last seen down 23.7% to trade at $27.04. Weighing on the shares is the company's lower-than-expected preliminary fiscal first-quarter earnings report -- released last Friday night -- which earned SANM price-target cuts this morning from RBC (to $31) and Craig-Hallum (to $37).

More broadly, the stock briefly capitalized on a 41.6% plunge in short interest in the most reporting period. However, this brought SANM shares barreling into familiar resistance in the $35-$36 region, home to the equity's 120-day moving average and its late-October bear gap highs.

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