Roku Stock Rallies in First Rodeo; Plus, Bulls Blitz AbbVie

By Emma Gilkey / September 28, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are trading slightly higher this afternoon after a mixed bag of economic data was released. Three stocks trading higher today are blue-chip leader McDonald's Corporation (NYSE:MCD), pharmaceutical concern AbbVie Inc (NYSE:ABBV), and newly public streaming entertainment stock Roku Inc (NASDAQ:ROKU). Here's a quick look at what is moving shares of MCD, ABBV, and ROKU.

MCD Gets Bullish Attention From Analysts

Longbow gave McDonald's an upgrade to "buy" from "neutral," saying the Dow stock deserves "to trade above the company's own historical multiples in light of its ongoing turnaround." The blue-chip leader was last seen trading up 3% at $157.96, but remains south of its Sept. 11 record high of $161.72.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX), MCD sports a 10-day put/call volume ratio of 1.25, ranking in the 75th percentile of its annual range. This suggests options traders have bought to open puts over calls at a faster-than-usual clip in the past two weeks.

Analysts, Options Bulls Move On ABBV

AbbVie made headlines after the pharma stock and Amgen (AMGN) settled a patent dispute with Humira. At last glance, the stock was trading up 6% at $89.72, a stone's throw from its intraday record high of $90.95. Credit Suisse raised its price target on ABBV to $94 from $74, and Deutsche Bank lifted its price target to $88 from $66.

The drug concern sports over 40,000 calls traded - three times the average intraday volume, and on pace for the 99th percentile of its annual range. The October 91 call is the most popular, with close to 6,000 contracts exchanged.

ROKU Stock Soars on First Day

Roku stock made its market debut this morning at $15.78 on the Nasdaq, after pricing its initial public offering (IPO) at $14 per share, the high end of the expected range. The fresh tech stock skyrocketed as high as $23.06 -- about 65% above its IPO price -- and at last check, was up 53% at $21.40. Founder and CEO Anthony Wood will own just over 23% of the stock, and controls more than 31% of the voting power.

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