Schaeffer's Trading Floor Blog

Analyst Downgrades: Amazon.com, Inc., Green Mountain Coffee Roasters Inc., and GameStop Corp.

Analysts downwardly revised their ratings on AMZN, GMCR, and GME

by 2/12/2014 9:30 AM
Stocks quoted in this article:

Analysts are weighing in today on online retailer Amazon.com, Inc. (NASDAQ:AMZN), coffee expert Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and video game retailer GameStop Corp. (NYSE:GME). Here's a quick roundup of today's bearish brokerage notes.

  • UBS isn't too thrilled about AMZN's 9.3% year-to-date drop to $361.79, as the firm not only downgraded the stock to "neutral" from "buy" and slashed its price target by $75 to $375 this morning, but also removed the equity from its U.S. Key Call list. Meanwhile, in the options pits, Amazon.com, Inc. sports a Schaeffer's put/call open interest ratio (SOIR) of 1.06, which is just 9 percentage points from a 12-month low. In other words, short-term speculators have rarely been more call-heavy toward the stock, compared to the last year. An unwinding of these bullish bets could create additional resistance for the shares.

  • Despite GMCR's impressive year-over-year climb of 173.5% to $119.40 (and last week's deal-induced spike), Longbow downgraded the stock to "neutral" from "buy" earlier today. Green Mountain Coffee Roasters Inc. is no stranger to bearish activity, as short interest currently accounts for 29.3% of its available float. This is equivalent to almost three weeks' worth of pent-up buying demand, at the shares' average daily volume. With that being said, GMCR may end up benefiting from short-covering activity in the near term.

  • GME has shed 35.5% over the past three months to trade at $35.75, so it comes as no surprise Benchmark decided to cut its price target to $31.73 from $38.55 this morning. Elsewhere, however, option traders have upped the bullish ante on GameStop Corp. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.01 ranks in the 71st annual percentile, indicating long calls have been picked up over long puts at an accelerated pace during the past two weeks.

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