Q2 STOCKS TO BUY

Earnings Release Sparks Whipsaw Trading on Exelixis Stock

The drug concern cited strong sales of its cancer drug Cabometyx for the earnings beat

Digital Content Manager
Feb 13, 2019 at 10:29 AM
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The shares of Exelixis Inc. (NASDAQ:EXEL) shot higher out of the gate this morning, but were last seen down 0.7% at $21.53, even though the company reported fourth-quarter earnings and revenue that beat analysts' forecasts. The biopharmaceutical company cited strong sales of its cancer drug Cabometyx for the better-than-expected results. 

EXEL stock remains down roughly 25% year-over-year, though it's recovered some since bottoming near $14 back in late October. The security is up almost 10% this year already, with recent support from its 60-day moving average helping along the way. 

Meanwhile, six out of eight analysts call the stock a "buy" or better. However, RBC just cut its price target to $34 from $35, and Oppenheimer lowered its price target to $31 from $40. Overall, the consensus 12-month price target stands at $28.44. 

The majority of options traders have been bullish on the stock, too. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EXEL has a 10-day call/put ratio of 10.17 that sits in the 61st percentile of its annual range. This means that 10 calls have been purchased for every one put, and at a moderately faster pace than what is typically seen. 

 
 

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