Carnival Stock Continues to Sink in Hurricane Wake

By Katie Coburn / September 15, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are trading higher this afternoon, with the Dow setting a new intraday record out of the gate. Among the names in the spotlight today are biopharmaceutical company Abeona Therapeutics Inc (NASDAQ:ABEO), cruise line Carnival Corp (NYSE:CCL), and semiconductor stock Advanced Micro Devices, Inc. (NASDAQ:AMD). Here's a quick look at what is moving shares of ABEO, CCL, and AMD.

RBC Thinks Abeona Therapeutics Stock Has Room to Run

Abeona Therapeutics stock is up 19% to trade at $16.66, after RBC Capital initiated coverage on the stock with an "outperform" rating and a price target of $23, citing the biotech sector's recent rally. The new target represents expected upside of 64% from ABEO stock's close of $14 yesterday. Further, RBC Capital named ABEO as one of its favorites among small-cap pharma stocks. Ranking as the second-best stock on the Nasdaq today, only behind Mirati Therapeutics stock, ABEO shares now boast a 242% year-to-date lead.

The biotech stock hit a three-year high of $17.25 earlier, and short squeeze could help ABEO shares climb even higher. Short interest represents nearly a third of the stock's total available float. At the equity's average daily trading volume, it would take more than a week to buy back the shorted shares.

Anything But Smooth Sailing for Carnival Stock

Analysts aren't as upbeat about Carnival stock, last seen down 4.9% at $65.37, after Credit Suisse downgraded the cruise stock to "neutral" from "outperform" and cut its price target to $70 from $78. The negative analyst attention is likely the result of fallout surrounding Hurricane Irma, which rocked the Caribbean and fueled CCL stock's worst weekly loss since February 2016 last week. The cruise stock is now poised to close below its 80-day moving average for just the third time this year.

Options traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been upping the bearish ante of late. CCL's 10-day put/call volume ratio of 3.15 stands just 6 percentage points from an annual high.

Advanced Micro Devices Stock Gets Lift From NVDA

Trading 2.9% higher at $12.63 are shares of Advanced Micro Devices, likely thanks to a halo lift from NVIDIA stock, which is higher on upbeat analyst attention. AMD shares touched a 10-year high of $15.65 on July 26, but have since retreated to their 200-day moving average, which contained pullbacks in May. Nevertheless, Advanced Micro Devices shares are up more than 100% year-over-year.

Despite its long-term technical strength, options traders on the ISE, CBOE, and PHLX have purchased AMD puts over calls at a faster-than-usual clip of late. The stock's 10-day put/call volume ratio of 0.41 ranks in the 70th percentile of its annual range.

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