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Rite Aid, Conagra Brands Stocks Soar Post-Earnings

Meanwhile, Baidu plans to trim its stake in Ctrip.com

Digital Content Manager
Sep 26, 2019 at 2:36 PM
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Stocks have turned lower today as investors fret over impeachment drama out of Washington, D.C. Three stocks in particular making moves today are pharmacy name Rite Aid Corporation (NYSE:RAD), food producer Conagra Brands Inc (NYSE:CAG), and online travel site Ctrip.Com International Ltd (NASDAQ:CTRP). Below, we'll dig into what's moving RAD, CAG, and CRTP today. 

Earnings Beat Boosts Rite Aid Stock 

Rite Aid stepped into the earnings confessional today, with second-quarter profits of 12 cents per share, which beat analyst estimates. In response, the stock is up 7.9% at $8.30, after squaring up against a recent ceiling at the $10 region. Still, RAD is down 67% in the past year.

The pharmacy concern's results have attracted quite a few options players today, with 11,000 call contracts and 8,665 put contracts across the tape so far -- 10 times what's typically seen at this point. The most popular call contract is the 9/27 10-strike, which expires tomorrow, while the most popular put appears to be the 9-strike contract from the same series, with positions being bought to open here. 

Conagra Stock Climbs Higher After Earnings

The shares of the packaged food producer hit a nine-month high of $31.83 earlier today, after the company posted first-quarter earnings of 43 cents per share, compared to analysts' estimated 39 cents. CAG attributed its purchase of Pinnacle Foods for the beat. At last check, CAG is up 4.7% at $31.31. 

Conagra has been soaring on the charts lately, pacing for its third straight win since bouncing off its 100-day moving average earlier this week. With a 46.5% year-to-date gain, short sellers are likely feeling the pain, since 7.2% of the float is sold short, after a 17.2% increase in short interest during the last two reporting periods.

CTRP Stock Takes a Tumble on BIDU Update

Ctrip.com's largest investor, Baidu (BIDU), this morning announced that it would be selling nearly one-third of its stake in the travel company. CTRP stock is down 5% in response, trading at $30.54 -- pacing for its lowest close in eight months. 

Since the stock's latest attempt at a rebound ran out of steam just beneath the 100-day moving average, CTRP stock has suffered a sharp sell-off -- ending seven of the past eight sessions in the red. The security could be a prime target for negative analyst attention, should this downward trajectory continue. Right now, 10 analysts consider CTRP a "strong buy," while only six call it a "hold." What's more, the stock's 12-month consensus target price of $42.37 is at a sizable 39.1% premium to current levels. 

 
 

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