Schaeffer's Trading Floor Blog

Analyst Downgrades: Sirius XM Holdings Inc., AT&T Inc., and VMware, Inc.

Analysts downwardly revised their ratings on SIRI, T, and VMW

by 4/23/2014 9:39 AM
Stocks quoted in this article:

Analysts are weighing in today on streaming music platform Sirius XM Holdings Inc. (NASDAQ:SIRI), telecom specialist AT&T Inc. (NYSE:T), and IT services provider VMware, Inc. (NYSE:VMW). Here's a quick roundup of today's bearish brokerage notes.

  • SIRI -- which is slated to report first-quarter earnings ahead of tomorrow's opening bell -- received a price-target cut to $3.50 from $3.80 at Wunderlich this morning. Since the start of 2014, Sirius XM Holdings Inc. has shed 7.5% to trade at $3.23, and investors have responded by upping the amount of short interest on the stock. During the past two reporting periods, these bearish bets increased by 30%, and now account for 8.3% of SIRI's available float.

  • T reported mixed first-quarter earnings results last night, spurring J.P. Morgan Securities to lower its price target to $34 from $35 this morning. (Meanwhile, Cowen and Company upped its price target by $1.) On the charts, AT&T Inc. has shed 3.9% out of the gate today to trade at $34.89, and is now sitting almost 1% below its year-to-date flat line. As such, the equity may see some downgrades in the near term, which could place additional pressure on the shares. At last check, T maintained nine "strong buy" endorsements, 15 "holds," and just one "strong sell" recommendation.

  • Last night, VMW forecast a narrower operating margin for the current quarter, and in response, a handful of brokerage firms downwardly adjusted their positions on the stock. This includes Barclays and Cowen and Company, which both slashed their price targets by $3 to $114 and $107, respectively. Meanwhile, on Main Street, short interest on VMware, Inc. accounts for roughly 23% of its available float. It would take nearly eight sessions to cover these bearish bets, at the shares' average pace of trading. Furthermore, VMW shares have plunged 10% already this morning to trade at $94.55.

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