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Furniture Stock Eyes Worst Day Ever After Tariff Warning

HOFT's CEO said newly imposed tariffs would take a toll on the industry

Digital Content Manager
Jun 12, 2019 at 3:26 PM
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While the Dow trades modestly lower, several individual stocks are making volatile moves, including Magnachip Semiconductor Corp (NYSE:MX), Synlogic Inc (NADSAQ:SYBX), and Hooker Furniture Corporation (NASDAQ:HOFT). Here's what's moving the shares of MX, SYBX, and HOFT.

Magnachip Stock Climbs NYSE On Forecast Boost

MX stock is at the top of the New York Stock Exchange today, after the company lifted its second-quarter revenue guidance. The firm said it expects sales from several of its products, including OLED Display drivers, to boost revenue. The company lifted its gross profit margin expectations, as well. 

The equity hit a nine-month high of $10.69 earlier, in response, before pulling back below the $10 region. MX is still trading 12.3% higher at $9.92 -- set to clock its third consecutive win. Today's price action has options traders flocking to the typically low-volume stock, with 1,080 contracts on the tape so far -- six times what's normally seen. Calls are especially popular, with most of the action occurring at the June 10 strike. 

SYBX Makes a Rebound on Research Agreement 

An $80 million partnership with Ginkgo Bioworks to quicken drugmaker Synologic's pipeline has the drug concern near the top of the Nasdaq, up 22.3% at $7.67. The stock is trading back atop the $8 mark for the first time since late May, bouncing off the five-month lows it panned yesterday.

Despite its recent plummet, analysts have had high expectations for the equity, with all nine in coverage calling it a "buy" or better. Plus, the consensus 12-month target price of $19.67 is more than double SYBX's current perch and represents a level it hasn't touched since 2017. 

HOFT Stock Plummets On Dismal Earnings

Shares of HOFT hit a new three-year low of $20.57 earlier, last seen down 22.8% at $20.80 -- eyeing their worst day ever -- after the furniture maker reported a decrease in net sales and income for its first quarter. CEO Paul B. Toms, Jr,. said he expects trade tensions with China, and a new 25% tariff on imports will "cause business disruptions in the industry throughout the next several months." 

Even before today's drop, HOFT had been struggling on the charts, down roughly 33% year-over-year, with recent pressure emerging at its 20-day moving average. Short sellers have been betting on bigger losses, too. In the past two reporting periods, short interest rose 71.1%. While there's still room on this bearish bandwagon, with the 140,000 shares sold short representing a slim 1.1% of the stock's available float, these skeptics are sidelined today, with HOFT sitting squarely on the short-sale restricted list.  

 
 

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