The Semiconductor Stock Facing Trump Headwinds

By Josh Selway / September 14, 2017 / www.schaeffersresearch.com / Article Link

It could be another ho-hum day on Wall Street, with stock futures pointing to a slightly lower open. Among specific stocks in focus are hospital operator Tenet Healthcare Corp (NYSE:THC), semiconductor concern Lattice Semiconductor Corp (NASDAQ:LSCC), and cancer treatment specialist Array Biopharma Inc (NASDAQ:ARRY). Here's a quick look at what's boosting shares of THC, LSCC, and ARRY.

Sale Reports Boost THC Shares

Tenet Healthcare stock is up 7.8% ahead of the open, thanks to reports the company is exploring a sale. This comes less than two weeks from the company's big CEO announcement. At $16.24, the shares are down almost 32% year-over-year, and had been struggling to overcome their 200-day moving average. Still, today's news could have THC short sellers shaking in their boots, as these bearish bets have been rising fast for nearly a year. In fact, short interest on Tenet Healthcare is now at the highest point since at least 2002, with 33.9 million shares sold short.

Trump Smacks Down Lattice-Canyon Bridge Deal

President Trump has blocked China-based Canyon Bridge Capital Partners' planned purchase of Lattice Semiconductor. The stock has been struggling for months, hitting an annual low of $5.51 just yesterday, before closing at $5.72, and now analysts are lowering their outlooks. Specifically, Jefferies this morning dropped its price target $6.50, and Craig-Hallum moved its target down to $6. Most brokerages are taking a wait-and-see approach toward LSCC shares, with three-fourths of those in coverage issuing tepid "hold" ratings.

ARRY Shares Slide After Stock Offering

Shares of Array Biopharma are down 8.5% in pre-market trading, after the company's public stock offering last night. It's been a big year for ARRY, rallying a brow-raising 200% year-over-year to trade at $10.53. Not surprisingly, sentiment is very bullish across Wall Street. For example, eight out of nine brokerages have "strong buy" ratings on the stock, and options traders have been buying calls for some time now. Specifically, Array Biopharma has a 50-day call/put volume ratio of 10.7 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), good enough to rank in the 68th annual percentile.

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