Hedge Fund Investment Lifts PayPal Ahead of Earnings
PayPal will report earnings on Wednesday
Stocks are still failing to make a big move in either direction ahead of high-profile earnings releases from some of the largest tech companies. Three names to watch in the meantime are payments processor PayPal Holdings Inc (NASDAQ:PYPL), drugmaker Reata Pharmaceuticals Inc (NASDAQ:RETA), and troubled restaurant chain Papa John's International, Inc. (NASDAQ:PZZA). Let's take a closer look at how shares of PYPL, RETA, and PZZA are trading today.
Loeb Investment Boosts PayPal Stock
PYPL shares are trading 1.3% higher at $88.62, after investor Daniel Loeb revealed his hedge fund Third Point has taken a stake in the company. Loeb believes the company can become the next interest powerhouse, saying consumers love the platform and that PayPal has the potential to significantly expand margins.
As such, the equity is trading just below its July 12 record high of $89.19, and options traders have been betting it'll expand on its 51% year-over-year gain. PYPL's 10-day call/put volume ratio of 4.51 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks just 4 percentage points from a 12-month high, showing an unusual demand for long calls. Meanwhile, the company is scheduled to report earnings after the close this Wednesday.
Drug Trial Data Sends RETA Soaring
Shares of RETA are near the top of the Nasdaq today, last seen up 56.4% at $72.59, thanks to positive trial data for its kidney disease drug bardoxolone. The stock earlier hit an all-time high of $76.25, and has easily tripled in value since its late-March lows below $20. It's clear analysts have been bullish on Reata Pharmaceuticals, since all six in coverage have "strong buy" ratings. On the other hand, the security has blown past its consensus 12-month price target of $63.50.