By Patrick Martin / October 18, 2017 / www.schaeffersresearch.com /
Article Link
The Dow is soaring today, topping 23,000 level and setting another intraday record in the process. Grocery stock Supervalu Inc. (NYSE:SVU) and video game maker Electronic Arts Inc. (NASDAQ:EA) are having tough days, while insurance issue Anthem Inc (NYSE:ANTM) toasts some good news. Here's a quick look at what is moving shares of SVU, EA, and ANTM.
SVU Stock Reverses Lower Despite Grocery Deal, Earnings Beat
Supervalu stock is down 9.6% to trade at $17.52, and earlier touched a a five-year low of $17.32, reversing an initial rally of as much as 11.8% after the company reported stronger-than-expected earnings and plans to buy
Associated Grocers of Florida. It's unclear what prompted the sharp turnaround, but SVU is nowshort-sale restricted, and Morgan Stanley cut its price target on the grocery name to $20.50 from $22.50.
SVU stock has shed 46% year-to-date, and could be vulnerable to additional price-target reductions. The equity's average 12-month price target is $34.56, a nearly 50% premium from its current perch.
Electronic Arts Stock Dips Below Key Level
Electronic Arts delayed the release of "Star Wars: Battlefront II" game -- originally scheduled for fiscal-year 2019 -- and is shutting down Visceral Games. Cowen analyst Doug Creutz opined that the delay "works out to a $0.35-$0.45 EPS hit" for Electronic Arts. Meanwhile, EA stock also received a price-target cut to $126 from $128 at Morgan Stanley.
As a result, EA stock is currently down 3.1% to trade at $112.38, among the worst on the Nasdaq. The drop today has the shares on track to finish below their 100-day moving average, a
key trendline, for the first time since January. Despiterecent struggles, EA stock has nevertheless added 41% year-to-date, and analysts are still firmly in EA's corner. Of the 18 brokerages covering the video game stock, 15 rate the shares a "buy" or "strong buy."
Pharma Deal With CVS Has Anthem Stock At Record High
Anthem stock is up 2.9% to trade at $192.60, among the best on the New York Stock Exchange (NYSE), after announcing plans to launch its own
pharmacy-benefits manager. Starting in 2020, CVS Health (CVS) will fill prescriptions and provide services to Anthem health plans and non-Anthem customers. ANTM stock earlier today reached a new all-time high of $199.23. The equity, which has added 34% year-to-date, is on track for its largest one-day gain since February.
A few recent options buyers may be kicking rocks. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ANTM sports a 10-day put/call volume ratio of 5.29, which ranks 1 percentage point from a 52 week high. This indicates that Anthem's long puts have rarely been more popular relative to calls in the past year.