Education Stock Halted During Earnings Collapse
Meanwhile, another stock extends its 2019 lead to almost 900%
Stocks mostly traded near breakeven today, though the Dow was last seen sharply lower after Fed Chair Jerome Powell suggested more rate cuts may not be coming. Three names to watch in the meantime are electric vehicle producer Workhorse Group Inc (NASDAQ:WKHS), drugmaker Omeros Corporation (NASDAQ:OMER), and online education specialist 2U Inc (NASDAQ:TWOU). Let's take a closer look at what's moving the shares of WKHS, OMER, and TWOU.
Pence Comments Send Workhorse Soaring Again
WKHS is spiking once again, with the shares last seen trading 14.6% higher to $5.18, after Vice President Mike Pence told reporters the company is going forward with a plan to bring some manufacturing jobs back to the idled General Motors (GM) plant in Lordstown, Ohio. The Cincinnati-based company's stock initially surged back in May on news GM planned to sell the factory to Workhorse, and today is trading at its highest point since early 2017. The latest move brings the equity's year-to-date gain to a not-so-bad 880%.
Not many people are betting against the small-cap stock, either. Going by average daily trading volumes, it'd take short sellers less than one day to cover. Just one analyst is in coverage on WKHS stock with a "buy" rating.
Omeros Pops on Manufacturing Deal
OMER stock is enjoying a 3.3% pop to trade at $15.92, thanks to news the company has agreed to a manufacturing deal for Omeros' narsoplimab.The shares have moved above the 200-day moving average after weeks of congestion at the closely watched trendline, but are still staring up at their early May highs near $21.
Some options traders may be betting on more upside from Omeros. New positions are opening today at the September 16 and 18 calls. Most the trading has taken place at the ask price, suggesting buying activity is occurring.
2U Stock Destroyed By Outlook
TWOU shares have completely collapsed, down 64.6% at $12.94, after earlier being halted. The stock also hit a five-year low of $12, and all this comes after the company again cut its full-year outlook due to competition and regulations in California around financial aid. Some bearish analyst notes have come through, with BMO downgrading its view to "market perform" from "outperform" and lowering its price target to $25 from $45.
There's certainly room for more downgrades to come through, since seven of the eight brokerage firms in coverage had "strong buy" recommendations. Meanwhile, some short sellers seemingly saw the writing on the wall, increasing the number of shorted shares by 13.5% in the last two reporting periods.