Stocks Traders Are Watching This Morning: May 4, 2017

The news is out, the Fed didn’t raise rates, but there was some rather hawkish language in its press release. This caused rates to rise, and in turn Treasury bond ETFs experienced some volatility. With traders placing a higher probability on the Fed raising rates in its next meeting, this caused gold prices to fall, as the U.S. dollar could rise. Consequently, this would weigh on the price of gold, potentially causing the demand for the yellow precious metal to fall. Moving on to stocks. There are some stocks moving off of company-specific catalysts today, and here are some stocks traders are watching this morning.

Ophthotech Corp (NASDAQ: OPHT) reported earnings yesterday, and traders are watching this stock in the morning trade. The company announced its first quarter financial results and provided a business update, and traders didn’t like what they heard.

The company noted that it had $227.6M in cash, cash equivalents and marketable securities, and it’s allocating around $45M to $55M to reduce personnel, wind down the Phase III clinical trials of Fovista in combination with Lucentis and the termination of the Fovista Expansion studies, just to name a few reasons.

Ophthotech’s collaboration revenue came in at just $1.7M in the first quarter of 2017, which was well below its figure for the first quarter of 2016. Now, this was primarily due to the decrease in shipments of Fovista API to Novartis. Moreover, the company lost $43.1M, or $1.20 per diluted share, compared to $1.03 per diluted share in the same period in the prior fiscal year. Here’s a look at OPHT on the daily chart, as of yesterday’s close:

Source: TradingView

 

Aratana Therapeutics (NASDAQ: PETX) provided preliminary first quarter financial results in an 8-K filing this morning, and the company noted that its first quarter net loss per share is expected to come in at 34 cents, which was in line with the Capital IQ consensus estimate. Moreover, the company forecasts its revenue to be $3.8M, topping the Capital IQ consensus estimate of $2.78M.

However, what sent shares lower was due to its termination of a material definitive agreement. Here’s what the company said in its SEC Form 8-K filing.

On April 28, 2017, the Company terminated its Sales Agreement, dated October 16, 2015, with Barclays (the “Sales Agreement”), pursuant to which the Company could from time to time sell up to an aggregate of $52.0 million of shares of its common stock through Barclays as sales agent (the “ATM Program”). Prior to termination, the Company sold approximately $18.0 of the $52.0 million available to be sold under the Sales Agreement. The Company terminated the Sales Agreement because it does not intend to raise additional capital through the ATM Program, and no additional shares of the Company’s common stock will be sold pursuant to the Sales Agreement. The Company will not incur any termination penalties as a result of its termination of the Sales Agreement. Source: Bamsec

Here’s how PETX opened up:

Source: TradingView

Superconductor Technologies Inc (NASDAQ: SCON) shares are up in the morning trade after LeRoy Kopp, a 10% owner, purchased 200K shares at $1.694 per share. Additionally, Kopp filed an SEC Form S-3, noting he had a direct ownership of over 830K shares and an indirect ownership of 20,866 shares. Here’s a look at SCON on the daily chart, as of yesterday’s close:

Source: TradingView

Conatus Pharmaceuticals Inc (NASDAQ: CNAT) shares gapped up higher, after it filed an SEC Form 8-K, stating that Novartis Pharmaceuticals exercised its option to an exclusive license for the global development and commercialization of emricasan.

In its filing, the company noted, “The license will become effective upon the Company’s receipt of a $7 million option exercise payment, expected in mid-2017. The option exercise by Novartis followed notification by Conatus of the initiation of the Phase 2b ENCORE-LF (for Liver Function) randomized, double-blind, placebo-controlled clinical trial evaluating emricasan in patients with decompensated liver cirrhosis caused by nonalcoholic steatohepatitis (“NASH”).”

Here’s a look at CNAT on the five-minute chart:

Source: TradingView

Health Insurance Innovations Inc (NASDAQ: HIIQ) announced its first quarter 2017 financial results last night. The company beat its EPS estimate by 6 cents, and it topped the consensus revenue estimates. Additionally, HIIQ’s revenues rose by over 30% year over year. Now, what traders were most impressed with was the fact that it raised its full year 2017 EPS and revenue guidance. The company expects its full year 2017 earnings to come in between a range of $1.40 to $1.50, and its revenues are expected to come in between $212M to $222M. This prompted Raymond James to upgrade the stock to Outperform, from Market Perform. Moreover, Raymond James indicated that HIIQ could be added to Russell Indices.

Here’s a look at HIIQ after the open:

stocks traders are watching

Source: TradingView

 

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