Schaeffer's Trading Floor Blog

Analyst Downgrades: Bank of America Corp, Alcatel Lucent SA (ADR), and LinkedIn Corp

Analysts downwardly revised their ratings on BAC, ALU, and LNKD

by 5/12/2014 9:29 AM
Stocks quoted in this article:

Analysts are weighing in today on financial kingpin Bank of America Corp (NYSE:BAC), telecom services provider Alcatel Lucent SA (ADR) (NYSE:ALU), and professional networking siteLinkedIn Corp (NYSE:LNKD). Here's a quick roundup of today's bearish brokerage notes.

  • BAC -- which is down 18.2% from its March 21 multi-year high of $18.03 to trade at $14.74 -- received a price-target cut to $18 from Jefferies early this morning. Meanwhile, in the options pits, Bank of America Corp is seeing heavier-than-usual short-term call open interest, compared to put open interest. This is evidenced by the fact that the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.59 ranks lower than 88% of similar readings taken during the past year.

  • ALU plunged 4.2% on Friday following an early morning earnings miss, spurring BMO to decrease its price target on the stock to $5 from $5.50 last night. Heading into the quarterly event, it seems speculators were skeptical toward Alcatel Lucent SA (ADR), which is down 12.5% year-to-date to trade at $3.85. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.19 ranks in the 85th annual percentile, indicating puts have been bought to open, relative to calls, at an accelerated pace during the past two weeks.

  • Down 31.4% so far this year to trade at $148.69, LNKD saw its price target slashed to $175 from $240 at Stifel today. Like ALU, LinkedIn Corp has seen heavier-than-usual bearish betting (compared to bullish) in its options pits of late, as the equity's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.98 ranks higher than 88% of similar readings from the past 12 months.

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