Schaeffer's Top Stock Picks for '25

The British Bank Stock Slipping After May's Failed Election Gambit

Upbeat diabetes drug data helps boost Lexicon stock, while RBS dips due to U.K. surprise election results

Managing Editor
Jun 9, 2017 at 10:57 AM
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U.S. stocks are higher, following the surprising U.K. election results. Among specific names on the move today are data platform Cloudera Inc (NYSE:CLDR), drug stock Lexicon Pharmaceuticals, Inc (NYSE:LXRX), and British bank stock Royal Bank of Scotland Group PLC (NYSE:RBS). Here's a quick look at what's moving shares of CLDR, LXRX, and RBS.

First Public Earnings Report Crushes CLDR Stock

CLDR shares are down 15% to trade at $19.22 today, despite announcing a slimmer-than-expected first-quarter loss, and comfortably exceeding revenue estimates. Following the release, J.P. Morgan Securites and Deutsche Bank cut their respective price targets to $20 and $23. As a result of today's big drop, CLDR stock is now short-sale restricted -- and with zero "sell" ratings from analysts so far, the shares could be hit with additional negative notes following today's bearish gap.

Diabetes Drug Results Sweeten LXRX Stock

LXRX is shooting higher today, trading up 6% at $16.27. The stock is reacting to positive results for its Phase 3 study of sotagliflozin for the treatment of patients with type 1 diabetes. The shares of LXRX are now on track to close above their 200-day moving average for the first time since May 16.

Today's pop could be due to a minor short-squeeze situation. Over 14 million shares of LXRX have been sold short, accounting for 35% of the stock's available float. At the stock's average daily volume, it would take nearly 26 sessions to repurchase all of the pessimistic positions. 

U.K. Election Results Drag Down RBS Stock

U.S.-traded shares of RBS are down 3.9% to trade at $6.40, following the shocking U.K. election results that dealt a blow to Prime Minister Theresa May's pro-Brexit agenda. The stock is now pulling back toward potential support at its 80-day moving average.

However, skeptics are lurking, as RBS is sporting a Schaeffer's put/call open interest ratio (SOIR) of 1.58, in the 84th percentile of its annual range. These figures suggest short-term options players have rarely been more put-heavy during the last 12 months.

 
 

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