Shares of FIT are taking a hit from the company's revenue forecast miss
Stocks are underperforming today, as trade talks between U.S. and China spark caution. Among individual stocks lower in today's trading are cybersecurity concern FireEye Inc (NASDAQ:FEYE), medical technology name Hologic, Inc. (NASDAQ:HOLX), and wearable athletic device maker Fitbit Inc (NYSE:FIT). Below, we will take a closer look at what's pressuring shares of FEYE, HOLX, and FIT.
FireEye Stock Finds Technical Support
FEYE stock is 7.6% lower to trade at $17.15, after finding support earlier from its 80-day moving average. FireEye reported an unexpected first-quarter loss of 4 cents per share, which is offsetting better-than-expected quarterly revenue and a forecast that the firm will be profitable later this year. Analysts don't seem too concerned about today's downside, though, with no fewer than four raising their price-targets on the tech concern.
In the options pits, meanwhile, short-term calls are unusually popular, relative to puts. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.60 is in the 23rd percentile of its annual range.
HOLX Lower on Disappointing Outlook
Hologic stock is down 6.8% at $36.94 -- earlier hitting an annual low of $35.10 -- after the company lowered its full-year revenue forecast on disappointing Cynosure sales, which is overshadowing in-line first-quarter earnings and revenue figures. Analysts were quick to chime in, too, with Leerink downgrading the stock to "market perform" from "outperform," and joining at least seven other analysts in trimming their price targets.
More bearish brokerage notes could be on the horizon for a stock that's now down almost 14% year-to-date. Heading into today's trading, 10 of 15 brokerages maintained a "buy" or better rating, with not a single "sell" on the books. Plus, the average 12-month price target of $43.34 is a 17.6% premium to current trading levels.
Fitbit Revenue Forecast Disappoints
Fitbit stock is 10.9% lower to trade at $4.90, after the company forecast lower-than-expected current-quarter revenue -- though the first-quarter adjusted loss and revenue beat estimates. FIT has quickly put erased this week's Google-induced upside in the rearview mirror, and is now on track for its biggest weekly loss since December.
Data from the major options exchanges indicates a bigger-than-usual preference for long puts over calls on the fitness stock in recent weeks. At the ISE, CBOE, and PHLX, FIT sports a 10-day put/call volume ratio of 1.37, which rankis in the 83rd percentile of its annual range.