BKS holiday sales have the stock fresh off a 23-year low
The stock market's whirlwind start to 2018 is continuing today, putting the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) on track for their biggest weekly gains since December 2016. And while chip stock Xilinx, Inc. (NASDAQ:XLNX) is riding the tailwinds higher, book retailer Barnes & Noble, Inc. (NYSE:BKS) and Kala Pharmaceuticals Inc (NASDAQ:KALA) aren't so resilient. Here's a closer look at what's moving shares of XLNX, BKS, and KALA today.
Goldman Calls Xilinx Stock a "Buy"
Xilinx stock is trading up 5.6% at $74.44 -- on track for its best week since January 2016, up 10.3% so far -- after Goldman Sachs upgraded the stock to its "conviction buy" list from "neutral," and lifted its price target to $78 from $72, a level not seen since October 2000. However, the shares came within a stone's throw of here in early November, when they topped out at $75.14.
More recently XLNX stock had been consolidating atop its 140-day moving average -- located near $68. Following today's bull gap, though, the security has now sliced through recent resistance at its 80-day moving average, and is now boasting a 28.4% year-over-year lead.
More bullish brokerage notes could be the catalyst to push the security to new highs. At last night's close, 12 of the 15 brokerages covering Xilinx shares maintained a "hold" or worse rating, while the average 12-month price target of $70.85 stands at a discount to current trading levels.
BKS Stock on Track for Worst Week Since 2015
Barnes & Noble stock has plunged 14.2% to trade at $5.58, and earlier at a 23-year low of $5.40. The shares are now pacing toward a 16.8% weekly loss -- their worst since December 2015. The retailer reported a 6.4% drop in same-store holiday sales, while online sales fell 4.5% during the November-December period. The company also lowered its full-year EBITDA forecast.
This dismal price action is nothing new for BKS shares, which spent the latter half of 2017 trading in a tight channel between $6.50 and $8.50. And while the stock's 200-day moving average emerged as a stiff ceiling in November, today's bear gap now has the stock staring at a nearly 48% year-over-year deficit.
Short sellers, meanwhile, have been firmly in control of BKS. While the stock is short-sale restricted today, short interest surged 43.6% in the most recent reporting period to 8.05 million shares -- the most since July 2015. These bearish bets now represent nearly 18% of Barnes & Noble's available float.
Mixed Data for Dry Eye Drug Sends KALA Stock Spiraling
Kala Pharmaceuticals stock hit a record low of $11.81 earlier, last seen trading down 28.9% at $12.33, after the company reported mixed results for its dry eye treatment -- stoking skepticism on the drug's ability to get regulatory approval. The shares are now down 33.4% so far this week, their worst weekly since going public last July.
KALA stock could be at risk of downgrades going forward, considering each of the four analysts covering the shares maintain a "strong buy" recommendation. Likewise, the average 12-month price target stands at a lofty $32.