HLF, GIMO, P Stocks In The News Today

By Patrick Martin / June 05, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are trading mixed this morning, as traders have a lot of headlines to digest. Among specific names on the move today are nutrition company Herbalife Ltd. (NYSE:HLF), software stock Gigamon Inc (NYSE:GIMO), and music streaming platform Pandora Media Inc (NYSE:P). Here's a quick look at what's moving shares of HLF, GIMO, and P.

Sales Warning Eats Into HLF

The company's warning that second-quarter sales will fall short of expectations is cutting into Herbalife stock's year-to-date gain as the week opens. The stock was lasttrading 5% lower at $69.85, on pace to close below its 20-day moving average for the first time since March. This puts a damper on an otherwise solid year for HLF, which is still up roughly 45% in 2017, and reached a three-year high last Thursday.

However, traders remain bearish, as roughly 48% of the stock's float is currently sold short. Plus, HLF sports a Schaeffer's put/call open interest ratio (SOIR) of 1.91 -- the ratio's highest level since November 2015.

Buyout Speculation Boosts GIMO

Gigamon is trading nearly 12% higher at $44.17 today, after Reuters reported the company is exploring a possible sale to a bevy of unnamed suitors. GIMO has been slowly trending upward since its Feb. 3 low around $30, and today's rally fills a mid-January bear gap -- but the stock's intraday high so far has arrived exactly one point short of GIMO's year-to-date breakeven point of $45.55.

Despite the stock's rough going in 2017, GIMO's 10-day call/put volume ratio of 18.47 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 92nd annual percentile. In other words, calls have been bought to open over puts at a near-annual-high clip.

Pandora Inches Higher on Verizon Chatter

Verizon Communications Inc. (NYSE:VZ) is reportedly considering a $100 million investment in Pandora, according to a New York Post source, should the streaming company's potential deal with Sirius XM Holdings Inc. (NASDAQ:SIRI) fall through. Pandora shares are just fractionally higher at $9.42 -- suggesting the bears who have sold short 38.5% of the equity's float aren't exactly rattled by the latest buyout rumor.

P stock has shed 27.8% year-to-date, and just touched an annual low of $8.68 last Wednesday. However, 11 analysts are still optimistic, maintaining a "strong buy" rating on the stock.

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