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Trade the Earnings: St. Jude Medical, Inc.

By: MT Newswires
Posted: 10/16/2013 6:19:00 AM
Referenced Stocks: STJ

Earnings Release Date: 10/16/2013

Time: Premarket

Avg. Extended-Hours Dollar Volume: $233,460,445

Earnings Sensitivity (up or down): 2.6%

St. Jude Medical, Inc. ( STJ ) is due to issue its quarterly earnings report before market open today. Given its history, traders can expect very active trading in the upcoming Premarket session immediately following the company's release of its quarterly earnings. An analysis of historical premarket and after-hours trading activity and liquidity conditions in STJ following an earnings release indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement in the following regular session.

Analysts at MidnightTrader have tracked how STJ's stock price has reacted to quarterly earnings events the past both in the after-hours and following regular session. The result of that study is below.

Over the last year, when shares of STJ rose in the extended-hours in reaction to its earnings announcement, there is limited evidence to suggest a follow-through in the same direction the next day.

Over that same historical period, when shares of STJ dropped in the extended-hours in reaction to its earnings announcement, history shows that 25% of the time over the last 4 quarters the stock dropped further, adding to the extended-hours losses by an average of 0.00% by the following regular session close.

