Schaeffer's Top Stock Picks for '25

Auto Stock Suddenly Doubles In Value

SOLO shares are up more than 100% today

Oct 29, 2018 at 2:36 PM
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The Dow has erased its earlier lead on reports the U.S. is considering more tariffs on China. Three names in particular to watch today are cybersecurity specialist Proofpoint Inc (NASDAQ:PFPT), casino technology concern Scientific Games Corp (NASDAQ:SGMS), and electric auto manufacturer Electra Meccanica Vehicles Corp (NASDAQ:SOLO). Here's a closer look at what's moving shares of PFPT, SGMS, and SOLO.

Analysts Say Buy the PFPT Stock Dip

PFPT stock nosedived 15.6% on Friday following a poorly received quarterly report and a couple executive departures, but today the shares are recovering in a big way. Specifically, they've jumped 7.7% to $89.97, thanks to upgrades out of Goldman Sachs and KeyBanc to the equivalent of a "buy."

Most analysts are already bullish on the equity, with 15 of 17 in coverage handing out "buy" or "strong buy" recommendations. However, Proofpoint has mostly struggled since breaking lower out of the $115-$130 range that mostly contained it from March through July, with the 50-day moving average blocking a breakout attempt earlier this month.

Heavily Shorted SGMS Hits New Low

SGMS stock is down 8% at $19.32, earlier hitting a 52-week low of $18.88, after Stifel cut its price target to $29 from $44. This just extends the security's sell-off, as it's dropped almost 60% in the past three months alone. Not surprisingly, short sellers have started to move in, with the number of shares sold short increasing by 13.1% in the last reporting period. Short sellers now hold more than 15% of Scientific Games' float, and it would take them nearly one week to cover those positions, based on the average daily trading volume.

Electra Meccanica Stock Doubles on Pre-Orders Update

SOLO stock has exploded for a 129% gain to trade at $4.99, after the company announced that pre-orders for its vehicles now exceed 64,000, representing roughly $2.4 billion in expected sales. But even with this monster move, the shares of Canada-based Electra Meccanica Vehicles are still down more than 50% in 2018. On the other hand, the stock has been flying under the radar since going public just last year, as not a single analyst is officially in coverage.

 
 

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