Plus, Jefferies believes Infinera will continue to lag the market
The Dow is down over 400 points this afternoon, as investors eye growing political tensions in Europe. Among individual stock movers today, biotech stocks Evolus Inc (NASDAQ:EOLS) and Revance Therapeutics Inc (NASDAQ:RVNC) are trending in opposite directions after a C-Suite shakeup, while tech concern Infinera Corp. (NASDAQ:INFN) struggles after a downgrade. Here's a closer look at how the shares of EOLS, RVNC, and INFN are trading today.
New CFO Vaults Evolus Stock Higher
Evolus stock is up 12.3% to trade at $25.21 -- one of the best stocks on the Nasdaq today -- after the company tapped Lauren Silvernail as its new CFO. Silvernail had previously been CFO for rival biotech name Revance Therapeutics. The two companies are competing over the development of a rival treatment to Allergan's (AGN) Botox, though Evolus' was recently rejected by the Food and Drug Administration (FDA).
EOLS stock remains a chip-shot from its Friday record high of $28.38. Despite the FDA setback earlier this month, Evolus stock has exploded in May, adding 268% and more than doubling its Feb. 9 IPO price of $12. Nevertheless, short sellers have been piling on. Short interest increased by a whopping 60% in the two latest reporting periods to a record high 1.02 million shares.
CFO Shakeup Buries Revance Stock
As Evolus toasts its new CFO, Revance Therapeutics stock is tumbling following her departure. At last check, RVNC was down 9.7% to trade at $28.20 -- one of the worst stocks on the Nasdaq today. The equity is on track for its worst single-day loss since June 2016, and has now given back 21% in 2018. Analysts remain committed to the biotech, though. Of the nine brokerages covering RVNC, eight rate it a "buy" or "strong buy," with zero "sells" on the books. Furthermore, the stock's average 12-month price target of $49.56 is nearly double its current price.
Jefferies Downgrade Drops INFN
Infinera stock is down 9.5% to trade at $9.11, after Jefferies cut the tech stock to "underperform" to "hold," while dropping its price target 50 cents to $7.50. The analyst in coverage noted that "Infinera's pace of innovation continues to lag the market." INFN shares scored an annual high of $12.39 on May 7, but shortly thereafter gapped lower after earnings, and is now testing their 120-day moving average. While INFN has still managed to tack on 44% in 2018, it is currently on track for a four-week losing streak -- its longest since August 2017.
There is ample room aboard the bearish bandwagon. Of the 15 brokerages covering INFN, 40% still rate it a "strong buy." In addition, the consensus 12-month price target of $11.79 now represents a 30% premium to the stock's current perch.