Schaeffer's Trading Floor Blog

Analyst Downgrades: Dendreon Corporation, Avon Products, Inc., and The Fresh Market Inc

Analysts downwardly revised their ratings on DNDN, AVP, and TFM

by 3/4/2014 9:36 AM
Stocks quoted in this article:

Analysts are weighing in today on biotech firm Dendreon Corporation (NASDAQ:DNDN), beauty products specialist Avon Products, Inc. (NYSE:AVP), and grocery chain The Fresh Market Inc (NASDAQ:TFM). Here's a quick roundup of today's bearish brokerage notes.

  • DNDN's wider-than-expected earnings loss for the fourth quarter led Bernstein to downgrade the stock to "market perform" from "outperform" this morning. The equity jumped nearly 15% in yesterday's session following the quarterly report, which was accompanied by news that DNDN's prostate cancer vaccine will soon be available in Europe. Elsewhere, a heavy amount of short interest has stacked up on Dendreon Corporation. Currently, 30.5% of the stock's float is sold short. At the shares' average pace of trading, it would take 21.5 sessions to cover these bearish bets. Out of today's gate, DNDN is down 2.4% to trade at $3.23.

  • Overnight, UBS initiated a "sell" rating and a price target of $14 on AVP -- which has shed 12.2% year-to-date to perch at $15.12. Elsewhere, the shares' poor technical performance has led to an overwhelming amount of bearishness among investors. Since the Jan. 15 reporting period, short interest on Avon Products, Inc. grew an impressive 67%, and now accounts for 4.6% of the stock's available float. This is equivalent to 19.8 million shares.

  • TFM -- which reports fourth-quarter earnings after the close on Thursday -- received a price-target cut to $36 from $50 at Jefferies this morning. In the options pits, speculators are also betting bearishly on The Fresh Market Inc, which has lost 29.4% over the past six months to trade at $34.61. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 3.14 ranks 7 percentage points from a 12-month peak. This means the recent rate of put buying, relative to call buying, is nearing annual-high levels.

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