By Patrick Martin / October 16, 2017 / www.schaeffersresearch.com /
Article Link
U.S. stocks are slightly higher today to kick off the week, as the Dow, S&P 500, and Nasdaq all touch record highs once again. Among the names in the spotlight this afternoon are biotech stock Cara Therapeutics Inc (NASDAQ:CARA), insurance provider Health Insurance Innovations Inc (NASDAQ:HIIQ), and retail stock Nordstrom, Inc. (NYSE:JWN). Here's a quick look at what is moving shares of CARA, HIIQ, and JWN.
Cara Therapeutics Stock Climbing After FDA Meeting
Cara Therapeutics stock is up 3.1% to trade at $12.85, after the company completed a positive
meeting with the Food and Drug Administration (FDA) for its kidney disease drug. CARA shares skyrocketed back in mid-June to a record high of $28.50, after the FDA granted breakthrough therapy for treatment, but the stock's rally was short-lived. Disappointing drug data sent the security plummeting more than 50% to trade below its 200-day moving average, a trendline that has contained breakout attempts since August.
A short squeeze could nudge the shares even higher. While short interest decreased by 9% during the last two reporting periods, the 8.27 million shares sold short represents over 36% of CARA's total available float. It would more than 12 days for shorts to fully cover their positions, at CARA's average daily trading volume.
HIIQ Stock Rallying Thanks To Upbeat Preliminary Results
Health Insurance Innovations stock is up 13.8% to trade at $21.50, after the company reported better-than-expected preliminary results for the third quarter; the insurance provider will report earnings after the close on Nov. 1. Thanks to today's gains, the stock is now trading right in line with its 200-day moving average. Moreover, HIIQ has tacked on a whopping 250% year-over-year, and the burst today likely has
short sellers sweating. Short interestincreased by 123% during the last two reporting periods alone.
Nordstrom Stock Sinking After Deal To Go Private Suspended
Nordstrom stock is down 5.8% to trade at $40.15 and among the worst on the New York Stock Exchange (NYSE) after the company suspended attempts to take the retailer private. Concern over the arrangement of funds was cited as the primary reason for the suspension. The drop today takes JWN stock, which has shed 16% year-to-date, to its lowest point since early-June.
In the meantime, options traders have been more put-skewed than normal. This is according to the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.24, which outranks four-fifths of readings from the past year.