Downgraded Penny Stock Hits Record Low
The brokerage firm said "compelling" evidence is needed to convince investors
It's a volatile day on Wall Street, with the Dow exploring a 466-point trading range on both sides of breakeven so far. Among individual stocks making big moves are racino operator Empire Resorts Inc (NASDAQ:NYNY), utility name PG&E Corporation (NYSE:PCG), and cancer immunotherapies specialist Jounce Therapeutics Inc (NASDAQ:JNCE). Here's a quick look at what's moving the shares of NYNY, PCG, and JNCE.
Empire Resorts Stock Tops Nasdaq on Sports Betting News
Empire Resorts stock is trading near the top of the Nasdaq -- up 31.3% at $11.20, on track for its best day since Sept. 17, 2014 -- on news the company has joined forces with an affiliate of bet365 to offer sports betting and online gaming at NYNY's Resorts World Catskills in New York. Plus, the new partner will buy up to $50 million in NYNY shares at $20 apiece. Despite today's gains, the stock remains down 58.5% year-to-date.
PCG Stock Hits 15-Year Low on Liability Warning
PG&E shares hit a 15-year low of $22.35 earlier, last seen down 25.9% at $24.23. Putting the stock on pace for its worst day in more than 16 years -- and worst month since 2001 -- are reports the company reported electrical issues to regulators ahead of the deadly Camp and Woolsey wildfires raging in California. The company also said liabilities could exceed its $1.4 billion in insurance coverage.
The embattled stock is now at risk for a round of negative analyst attention, considering half of the 14 brokerages in custody maintain a "hold" or "strong sell" rating. Plus, the average 12-month price target of $52 is a nearly 124% premium to PCG's current stock price.
Jounce Therapeutics Stock Remains Heavily Shorted
J.P. Morgan Securities downgraded Jounce Therapeutics stock to "underweight" from "neutral," citing disappointing preliminary data for the company's lead candidate, JTX-2011." Additionally, the analyst in coverage said "it will require compelling and material evidence that the company has found the correct path forward" to draw buyers to JNCE's table.
In reaction, JNCE shares are down 9.3% at $3.99, earlier bottoming a record low of $3.30, bringing their 2018 deficit to 68.6%. Short sellers have been cashing in their chips, too. Short interest fell 20.8% in the two most recent reporting periods to 2.68 million shares. This still represents a healthy 9.7% of the stock's available float, or 8.2 times the average daily pace of trading.