MGM Stock Sinks After Vegas Shooting; Plus, the Biotech Up Nearly 500% This Year

By Emma Gilkey / October 02, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are seeing a higher start to the fourth quarter this morning, despite news of the Las Vegas mass shooting.Among the stocks making moves this morning are casino company MGM Resorts International (NYSE:MGM), immunotherapy concern Dynavax Technologies Corporation (NASDAQ:DVAX), and tech stock Synchronoss Technologies, Inc. (NASDAQ:SNCR). Here's a closer look at what's moving shares of MGM, DVAX, and SNCR.

Las Vegas Shooting Brings MGM Stock Lower

Shares in MGM Resorts are down 3.9% at $31.32, after news spread of the Las Vegas mass shooting that happened outside Mandalay Bay hotel late Sunday evening. The attack is reportedly the largest mass shooting in U.S. history, where at least 50 people have been killed, and 400 injured. The casino stock hit a nine-year high of $34.65 on Sept. 7, but has since shed 10%. However, the round-number $30 area has provided support for MGM stock over the past few months.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), data shows the stock's 10-day put/call volume ratio of 1.32 is higher than 88% of ratios in its annual range. This suggests puts have been favored over calls by a wider-than-usual margin in the past two weeks.

DVAX Trading Higher Amid Reports of Vaccine Shopping

Dynavax stock up 7.5% at $23.11 -- and fresh off an annual high of $23.25 -- amid reports the firm is exploring strategic options -- including a potential sale or licensing deal -- for its hepatitis B vaccine. The drug stock is now up 485% year-to-date, and nearly doubled in value in July after an FDA nod for the vaccine.

However, while absolute options volume tends to run light, options traders were leaning toward the bears camp with DVAX, with data from the ISE, CBOE, PHLX ranking the stock's 50-day put/call volume ratio of 0.33 in the 79th percentile of its annual range. This indicates puts have been bought to open over calls at a faster-than-usual pace in the past 10 weeks.

Buyout Buzz Boosts Synchronoss Stock

Synchronoss Technologies shares are up 20.6% to trade at $11.25,after the company revealed that it is in discussions with multiple potential suitors, receiving "attractive proposals compared to the recent proposal from Siris." SNCR stock gapped lower in mid-September, after Siris Capital abandoned its bid for Synchronoss, resulting in the shares touching an eight-year low of $8.71 on Sept. 22.

Analysts following SNCR have been unsurprisingly skeptical, with the stock sporting one "strong sell" and four tepid "hold" recommendations. In the same vein, short interest represents nearly 13% of SNCR's total available float, and would take about 14 sessions to buy back, at the equity's average pace of trading.

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