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Analyst Undeterred by Under Armour SEC Probe

Raymond James upgraded Under Armour stock

Managing Editor
Nov 27, 2019 at 2:39 PM
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Stocks are hovering around record highs as the Thanksgiving holiday nears. Among the names making notable moves today are athleisure name Under Armour (NYSE:UAA), as well as biotech concerns Evolent Health Inc (NYSE:EVH), and cybersecurity name Onconova Therapeutics Inc (NASDAQ:ONTX). Here's a quick look at what's moving the shares of UAA, EVH, and ONTX.   

Despite Upgrade UAA Staring Up at Resistance

The shares of Under Armour are up 4.8% to trade at $18.88 today, after Raymond James raised its rating to "strong buy" from "outperform." The analyst in coverage brushed off concerns of the federal accounting probes by the Securities and Exchanges Commission (SEC), while lauding the company's upcoming product launch. UAA's rally today has lost steam below its 40-day moving average, a trendline not toppled since an early November post-earnings bear gap

Short-term options premiums on UAA look relatively cheap at the moment, based on the equity's Schaeffer’s Volatility Index (SVI) of 32%, which ranks in the 6th percentile of its annual range.

EVH Heading For Worst Day Since May After Medicaid Setback

The worst stock on the New York Stock Exchange (NYSE) today is Evolent Health, last seen down 27.9% to trade at $7.69, set to snap an eight-day winning streak. This comes after the the company's partner, Passport Health Plan, was not given a Kentucky managed medicaid contract. EVH is on track for its worst single-session drop since May, and earlier traded at $5.67, a chip-shot from its Aug. 7 record low of $5.50. 

With the stock on the short-sale restricted list today (SSR), options trading has exploded. With under two hours left in today's trading, almost 9,800 contracts have changed hands, five times the expected intraday amount and and volume pacing for the 100th percentile of its annual range. Leading the charge is the December 7.50 call, and there is also sell-to-open activity occurring at the December 5 put. 

Point72 Increases Stake in ONTX

On the other end of the spectrum is Onconova Therapeutics stock, up 29.2% to trade at $0.15, one of the better stocks on the Nasdaq today. Point72 -- led by billionaire investor Steve Cohen -- raised its stake in the company to 9.99% from 2.95%. Although this likely snaps a five-day losing streak, ONTX is still held down by its 10-day moving average. And year-to-date, Onconova stock is down 92.5%.

 
 

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