Today's stocks to watch include Aerie Pharmaceuticals Inc (AERI), Atmel Corporation (ATML), and Cablevision Systems Corporation (CVC)
It's the day we've all been waiting for, as the Federal Open Market Committee (FOMC) will adjourn its two-day meeting and possibly announce the first rate hike in years. U.S. benchmarks are hovering slightly below breakeven as everyone sets their alarms for 2 p.m. ET. Today's equities in focus are biotech concern Aerie Pharmaceuticals Inc (NASDAQ:AERI), microcontroller maker Atmel Corporation (NASDAQ:ATML), and cable operator Cablevision Systems Corporation (NYSE:CVC).
- AERI has rocketed 66% higher to $30.01 -- territory not explored since its late-April bear gap -- after reporting favorable results from the second Phase 3 trial of its glaucoma treatment (subscription required). Brokerage houses responded to this positive news, as Aerie Pharmaceuticals Inc received no fewer than seven price-target elevations after the announcement -- including Brean raising its target to $48 from $33, Needham upping its target to $45 from $27, and RBC raising AERI's target to $44 from $31. Prior to this announcement, the stock was kicking sideways between $15 and $20. However, today's news could kick off a short-covering rally, as 22.3% of the pharmaceutical firm's float is sold sort, representing more than eight days' of pent-up buying demand, at AERI's average pace of trading.
- ATML dipped 1.5% to $8.06, after Bloomberg said China Electronics Corp. is in talks to acquire the chipmaker. According to the report, China Electronics wants to purchase Atmel Corporation at about $8.50 per share -- not far from ATML's closing price of $8.18 yesterday. Analysts are bullishly aligned toward the chip concern, as seven of the 12 brokerages tracking ATML rate it a "buy" or better. On the charts, the stock has shed 4.3% in 2015, and is now facing a potential headwind in the form of its 10-week moving average.
- CVC is keeping this week's M&A theme alive, as European telecommunications and cable company Altice announced agreed to purchase the American firm for $17.7 billion, or $34.90 per share -- a 22% premium to CVC's closing price of $28.54 yesterday. The purchase of Cablevision Systems Corporation is a continuation of Altice's U.S. expansion attempts. Not surprisingly, CVC jumped to a 12-year high of $33.21 out of the gate, and was last seen 15.6% higher at $33. The shorts are likely kicking rocks, as more than 12% of CVC's float is sold short, representing nine days' worth of pent-up buying demand, at the stock's average daily trading volume.
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