Morning Buzz: Digital Ally (DGLY), Geron Corporation (GERN), Lululemon (LULU), EnLink Midstream (ENLK)

Shares of Digital Ally Inc. (DGLY) are lower by nearly 20% in pre-market trading on Friday following the company’s disappointing 3Q results. Digital reported EPS loss of $2.32 per share, up from the loss per share of $0.42 reported in the year-ago period. Revs came in at $4.66 million, up from $4.48 million year-over-year. Digital Ally also reported a net loss of $6.40 million, up from the $905,835 loss reported in the year-ago period, and a contraction of  gross profit margin as a percentage of sales to 52.8% in 3Q, compared with 54.0% in 3Q’13.

“Our third quarter operating results were significantly impacted by non-cash and/or non-recurring charges related to changes in warrant derivative and senior secured note payable valuations and issuance expenses,” stated Stanton Ross, Chief Executive Officer of Digital Ally, Inc. “On a combined basis, these expenses accounted for more than $4.9 million, or approximately 77% of our total net loss in the quarter ended September 30, 2014.”

DGLY shares recently lost $2.24 to $10.98. In the past 52 weeks, shares of Lenexa, Kansas-based company have traded between a low of $3.03 and a high of $33.59. Shares are up 65.25% year-over-year, and 43.85% year-to-date.

Shares of Geron Corporation (GERN) climbed over 38% in pre-market trading on Friday after the company announced that it has entered into an exclusive worldwide license and collaboration agreement with Janssen Biotech. Under the terms of the agreement, Geron will receive an initial payment of $35 million.

In other Geron news, analysts at Piper Jaffray upgraded this morning their rating on the shares of Geron Corporation from ‘Neutral’ to ‘Overweight’ with a price target of $5.00 implying 56% expected return.

On valuation measures, Geron Corp has a t-12 price/sales ratio of 310.49. EPS for the same period is ($0.25). Currently there is only 1 analyst that rates GERN a ‘Buy’ and 3 that rate it a ‘Hold’. No analyst rates it a ‘Sell’. GERN has a median Wall Street price target of $4.13 with a high target of $4.25.

Geron Corporation shares recently traded at $3.20, up 89 cents. The stock has a 52-week range of $1.31 to $6.54.

Lululemon Athletica Inc. (LULU) is down nearly 3% pre-market. The decline could be attributed to Sterne Agee analysts who cut their rating on the shares of yoga-inspired athletic apparel company to ‘Underperform’ from ‘Neutral’. In a note to investors this morning, the broker said that fiscal 2013 saw many damaging events, including the tenure of the new CEO which has been so far uninspiring.

Lululemon Athletica shares are currently priced at 27.21x this year’s forecasted earnings, compared to the industry’s 19.34x earnings multiple. Ticker has a PEG and forward P/E ratio of 1.75 and 22.37, respectively. Price/sales for the same period is 3.90, while EPS is $1.66. Currently there are 8 analysts that rate LULU a ‘Buy’ and 22 that rate it a ‘Hold’. 1 analyst rates it a ‘Sell’. LULU has a median Wall Street price target of $45.00 with a high target of $55.00.

LULU shares recently traded at $44.14, down $1.05. Shares are down 34.49% year-over-year, and 23.45% year-to-date.

EnLink Midstream Partners, LP (ENLK) shares are trading down more than 6% in Friday’s pre-market session. The company today announced that it has priced an underwritten public offering of 10.5 million common units representing limited partner interests in the Partnership at a public offering price of $28.37 per common unit.

The offering is expected to close on or about November 19, 2014. EnLink said the Partnership intends to use the net proceeds from this offering, including any net proceeds from the underwriters’ exercise of their option, for capital expenditures and general partnership purposes.

EnLink Midstream Partners, currently valued at $6.86B, has a median Wall Street price target of $35.00 with a high target of $39.00. Approximately 1.07M shares have already changed hands, compared to the stock’s average daily volume of 443.70K.

In the past 12 months, shares of the midstream energy services provider have traded between a low of $25.25 and a high of $35.54 with the 50-day MA and 200-day MA located at $30.00 and $30.50 levels, respectively. Additionally, shares of ENLK trade at a P/E ratio of 5.84 and have a Relative Strength Index (RSI) and MACD indicator of 46.80 and -0.45, respectively.

ENLK currently prints a one year return of about 19.98%, and a year-to-date return of around 12.07%.

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