Schaeffer's Trading Floor Blog

Analyst Downgrades: Amazon.com, Inc., Sirius XM Holdings Inc., and Cree, Inc.

Analysts downwardly revised their ratings on AMZN, SIRI, and CREE

by 4/28/2014 9:40 AM
Stocks quoted in this article:

Analysts are weighing in today on e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN), streaming music provider Sirius XM Holdings Inc. (NASDAQ:SIRI), and LED issue Cree, Inc. (NASDAQ:CREE). Here's a quick roundup of today's bearish brokerage notes.

  • Bernstein jumped on the post-earnings bearish bandwagon for AMZN this morning, cutting its price target to $360 from $420. Following the stock's nearly 10% drop last Friday, AMZN is now down 24.8% on a year-to-date basis to trade at $300.05 -- in territory not charted since last October. Nevertheless, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.82 ranks just 1 percentage point from a 12-month low. In other words, Amazon.com, Inc.'s short-term option traders are more call-heavy than usual right now.

  • SIRI -- which has shed 10.9% so far this year to trade at $3.11 -- saw its price target dropped to $3.50 from $4 at RBC this morning. Meanwhile, the equity sports a top-heavy 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 8.93, which ranks in 74th annual percentile. This means speculators have bought to open calls over puts at a faster-than-usual pace during the past two weeks.

  • CREE -- which is down 23.8% year-to-date and just hit a 52-week low of $47.54, following last week's earnings-induced slide -- received a price-target cut to $50 from $60 at Credit Suisse this morning. Elsewhere, Cree, Inc. traders have upped the bearish ante, as short interest climbed 7.7% during the most recent reporting period, and now accounts for 9.9% of the stock's available float. As such, it would now take almost six sessions to cover these bearish bets, at CREE's average pace of trading.

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