Schaeffer's Trading Floor Blog

Analyst Downgrades: Citigroup Inc, EMC Corporation, and Las Vegas Sands Corp.

Analysts downwardly revised their ratings on C, EMC, and LVS

by 1/30/2014 9:35 AM
Stocks quoted in this article:

Analysts are weighing in today on financial services giant Citigroup Inc (NYSE:C), IT services provider EMC Corporation (NYSE:EMC), and casino operator Las Vegas Sands Corp. (NYSE:LVS). Here's a quick roundup of today's bearish brokerage notes.

  • Wells Fargo removed C from its Priority Stock list this morning, as the shares have shed 13% since tagging an annual high of $55.28 on Jan. 9 to close Wednesday at $48.08 -- mostly due to poorly received earnings. Meanwhile, short-term option traders are currently more call-heavy toward Citigroup Inc than they have been at any other time during the past 12 months, as evidenced by the fact that the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.40 ranks the lowest of all comparable readings from the last year.

  • EMC's weak first-quarter earnings forecast led Needham to cut its price target to $30 from $32 this morning. Technically speaking, the equity has been in a rut over the past year, and at $24.70, is just fractionally higher than its year-ago price. Heading into its quarterly announcement, EMC Corporation's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio stood at 10.14, just 7 percentage points short of a 12-month peak. In other words, long calls have been preferred over long puts at a near-annual-high rate.

  • Deutsche Bank and Susquehanna lowered their price targets on LVS to $85 from $87, and to $92 from $93, while Sterne Agee upped its price target, in the wake of weaker-than-expected fourth-quarter earnings data . In the past five sessions alone, Las Vegas Sands Corp. has lost 7.6% to trade at $75.8, yet its 10-day ISE/CBOE/PHLX call/put volume ratio of 3.31 is just 2 percentage points short of an annual high, meaning option traders have bought to open LVS calls over puts at a faster rate just 2% of the time over the past year.

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