Schaeffer's Trading Floor Blog

Analyst Downgrades: Glu Mobile Inc., Whole Foods Market, Inc., and Yum! Brands, Inc.

Analysts downwardly revised their ratings on GLUU, WFM, and YUM

by 7/31/2014 9:18 AM
Stocks quoted in this article:

Analysts are weighing in today on mobile gaming issue Glu Mobile Inc. (NASDAQ:GLUU), organic grocer Whole Foods Market, Inc. (NASDAQ:WFM), and Pizza Hut parent Yum! Brands, Inc. (NYSE:YUM). Here's a quick roundup of today's bearish brokerage notes.

  • Despite topping the Street's bottom-line projections for the second quarter, and announcing the acquisition of Cie Games, GLUU is set to open roughly 10% lower this morning. Part of this pre-market sell-off may be attributable to a downgrade to "hold" from "buy" at Benchmark (although Canaccord Genuity and Stifel each raised their price targets). Taking a step back, analysts have been extremely optimistic toward Glu Mobile Inc.; in fact, eight brokerage firms have doled out a "strong buy" rating toward the stock. This bullish configuration is understandable, too, given the equity's year-to-date advance of nearly 78%.

  • WFM is also set to open lower this morning, after last night reporting lower-than-expected fiscal third-quarter sales and reducing its full-year guidance. Subsequently, the stock saw its price target slashed at Cantor, Jefferies, Suntrust Robinson, and J.P. Morgan Securities (which also reduced its rating to "neutral" from "overweight"). Elsewhere, short interest has been rising on Whole Foods Market, Inc. -- which has shed 32.4% in 2014 to trade at $39.11 -- and now makes up nearly 10% of the equity's float.

  • Finally, YUM is getting pummeled by Wall Street, after the company said the recent expired-meat scandal has resulted in a "significant, negative impact" on sales in China. Specifically, Deutsche Bank, Janney, RBC, and Stifel lowered their price targets on the stock, which has tumbled nearly 12% since the news broke, and now trades at $73 per share. YUM's consensus 12-month price target is still lodged at $87.11, meaning additional bearish brokerage notes could be on the way.

permanent link

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.