Schaeffer's Trading Floor Blog

Analyst Downgrades: Citigroup Inc, JDS Uniphase Corp, and GameStop Corp.

Analysts downwardly revised their ratings on C, JDSU, and GME

by 3/28/2014 9:33 AM
Stocks quoted in this article:

Analysts are weighing in today on financial firm Citigroup Inc (NYSE:C), tech services provider JDS Uniphase Corp (NASDAQ:JDSU), and video game retailer GameStop Corp. (NYSE:GME). Here's a quick roundup of today's bearish brokerage notes.

  • SocGen became the latest brokerage firm to weigh in on C, following the Federal Reserve's rejection of the company's capital plans. To be specific, the firm downgraded the stock to "hold" from "buy" and lowered its price target to $52 from $58. On the charts, Citigroup Inc is now facing a year-to-date deficit of 8.4% to trade at $47.74, yet call open interest (relative to put open interest) is heavier than usual among C options expiring within the next three months. This is evidenced by the fact that the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.56 ranks lower than 83% of comparable reading from the past year. An unwinding of these bullish bets could create more technical pressure for C shares in the near term.

  • JDSU -- which has shed more than 6% over the past five sessions to trade at $13.67 -- received a downgrade to "sector perform" from "outperform" at RBC this morning. Regardless of its recent technical struggles, the equity maintains a SOIR of 0.39, which ranks 6 percentage points from an annual low. In other words, short-term option players have rarely been more call-focused toward JDS Uniphase Corp during the past 12 months.

  • SunTrust Robinson and Janney cut their price targets on GME to $55 from $60, and to $50 from $63, respectively, following the company's disappointing quarterly report yesterday. (Ascendiant Capital, on the other hand, upped its price target to $52 from $51.) Year-to-date, GameStop Corp. has shed 23.2% to trade at $37.74, so it's no wonder short interest accounts for a lofty 31.2% of the equity's float. It would take almost three weeks to cover these bearish bets, at GME's average daily volume, pointing to a significant amount of skepticism.

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