Small Cap Stocks Traders Are Watching: May 26, 2017

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It’s Friday, and trading volumes are expected to be light heading into the extended weekend, with Memorial Day on Monday. The markets were down slightly, as traders were focused on the Durable Goods Orders at 8:30 AM ET, as well as GDP. For the Durable Goods Orders, new orders contracted by 0.7% month over month, and core capital goods were unchanged from the previous month. Real GDP grew by 1.2% quarter over quarter, while the consensus estimate was 0.8%. Additionally, Consumer Sentiment data will be released at 10:00 AM ET. Although trading volumes are expected to be light overall, there are some stocks moving, and here are some small cap stocks traders are watching today.

JinkoSolar Holding Co., Ltd. (NYSE:JKS) shares are down over 6% during the pre-market session, after Morgan Stanley and Citigroup downgraded the solar company. Morgan Stanley downgraded JinkoSolar to Underweight from Overweight, and lowered its price target to $16.40, from $19.40. The firm believes that JinkoSolar’s first quarter earnings results could fall 50% below Wall Street estimates. Additionally, Citigroup downgraded JKS to Sell, from Neutral, and lowered its price target to $15, from $15.55.

Check out JKS on the daily chart.

small cap stocks

Source: TradingView

Aerie Pharmaceuticals Inc (NASDAQ:AERI) announced that it priced its registered underwritten public offering of $75M worth of shares of its common stock, at $53.75 per share. Now, this public offering was upsized by $25M over the offering amount, as well as the $50M worth of shares of its common stock sold through the full utilization and completion of an at-the-market program. That in mind, total gross proceeds are expects to be $125M, before expenses. If you recall, Aerie Pharmaceuticals reported successful primary efficacy results of its Phase III Mercury 2 registration trial on Wednesday, and shares closed up over 30% yesterday.

Take a look at AERI on the daily chart.

Source: TradingView

BioDelivery Sciences International, Inc. (NASDAQ: BDSI) shares are up over 4% ahead of the bell, after H.C. Wainwright initiated coverage on BDSI. H.C. Wainwright initiated BioDelivery Sciences with a Buy rating and a $4 price target, and the firm believes that the company has transformed to a pharmaceutical company with a differentiated growth driver.

Here’s a look at BDSI on the daily chart.

small cap stocks

Source: TradingView

Now, if you look at the chart above, the 20-day simple moving average (SMA) crossed above the 50-day SMA, and the price broke above the 200-day SMA, which could be an indication that BDSI could build momentum.

8×8, Inc. (NASDAQ:EGHT) is up nearly 7% ahead of the bell, following its announcement of fourth quarter and full fiscal 2017 financial results. The company noted that its total revenue for FY 2017 grew by 21% year over year, to $253.4M. EGHT reported non-GAAP net income of $21.6M, or 23 cents per share for FY 2017. For the fourth quarter 2017, non-GAAP net income came in at $5.1M, or 5 cents per diluted share, which topped the Zacks Consensus Estimate of 3 cents per share.

Additionally, 8×8 provided guidance for the 2018 fiscal year:

  • Service revenue in the range of $280 million to $285 million, representing approximately 19% to 21% YoY increase.
  • Total revenue in the range of $296 million to $300 million, representing approximately 17% to 19% YoY increase.
  • Non-GAAP pre-tax net income in the range of $21 million to $26 million, approximately 7% to 9% of revenue. Our estimated Non-GAAP effective tax rate is expected to be approximately 36%. Our cash taxes are expected to be less than $1 million.

Source: Businesswire

Here’s a look at EGHT on the daily chart.

Source: TradingView

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