Switch Stock Impressive in IPO; Jefferies Sinks ICPT Stock

By Patrick Martin / October 06, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are trading lower this afternoon, with the Dow, S&P 500, and Nasdaq Composite all on track to snap their record-setting win streaks. Tech stock Switch, Inc (NASDAQ:SWCH) is making waves with its IPO, while biotech stock Intercept Pharmaceuticals Inc (NASDAQ:ICPT) and global consumer products stock Helen of Troy Limited (NASDAQ:HELE) are sinking. Here's a quick look at what is moving shares of SWCH, ICPT, and HELE.

Switch Stock Roars Out Of The Gate in IPO

Switch Inc, a computer hardware company that designs data centers, had its initial public offering (IPO) today. The company raised $531 million, good for the second biggest IPO this year. SWCH stock is currently trading at $21.99, up 29% from its IPO price of $17. Earlier today, the stock touched an intraday high of $24.90, and its impressive action out of the gate will surely catch investors' eye as the fourth quarter rolls along.

Jefferies Report Sinks Intercept Stock

Intercept Pharmaceuticals stock is down 7% to trade at $67.67 and is currently short-sale restricted, after Jefferies reported that summer seasonality could slow third quarter prescriptions for Ocaliva, the company's controversial liver disease drug. It's been a rough stretch for ICPT stock, which has shed over 37% year-to-date and fell to a three-year low of $54.98 on Sept. 27.

Nevertheless, some analysts remain upbeat. Of the 15 brokerages covering ICPT stock, one-fifth rate the shares a "buy" or "strong buy." Continued technical struggles could have analysts re-evaluating their outlooks.

Mixed Earnings Results Sink HELE Stock

Helen of Troy reported a second-quarter earnings beat last night, but also lowered its guidance for 2018. As a result, HELE stock is down 8% to trade at $89.29, a 13% drop from its annual high of $102.88 on Aug. 14. HELE's average 12-month price target is $104.25, indicating the equity could be ripe for price-target cuts in the near future.

Short sellers are likely cheering the equity's fall. Short interest has increased by 22% during the last two reporting periods, and is currently at its highest point since August 2016. However, this only accounts for 2.6% of the HELE's total available float, indicating that there is still plenty of room for short sellers to hop aboard the stock.

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