Schaeffer's Trading Floor Blog

Analyst Downgrades: Transocean LTD, Amarin Corporation plc (ADR) and Deckers Outdoor Corp

Analysts downwardly revised their ratings on RIG, AMRN, and DECK

by 2/28/2014 9:34 AM
Stocks quoted in this article:

Analysts are weighing in today on oil and gas company Transocean LTD (NYSE:RIG), biopharmaceutical name Amarin Corporation plc (ADR) (NASDAQ:AMRN), and footwear specialist Deckers Outdoor Corp (NASDAQ:DECK). Here's a quick roundup of today's bearish brokerage notes.

  • RIG is still feeling the heat from its dismal fourth-quarter earnings announcement Wednesday evening. In pre-market action, a number of brokerage firms downwardly revised their positions on the stock, including RBC and Susquehanna, which both cut their price targets to $45, from $46 and $48, respectively. Since the turn of the year, Transocean LTD has lost nearly 14% to trade at $42.44, so it's not surprising short interest ramped up 52.7% since the Jan. 15 reporting period. Now, these bearish bets account for 8.8% of the stock's float, which is equivalent to 5.8 sessions' worth of pent-up buying demand, at the shares' average daily volume.

  • AMRN reported a wider-than-expected per-share loss for the fourth quarter, leading MKM Partners to slash its price target to $1.50 from $1.75. In the past six months, the stock has plunged 71.8% to trade at $1.74. However, option traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open roughly 15 calls for every put during the past 10 sessions, likely due to the limited profit potential on long puts. The resulting call/put volume ratio of 14.98 ranks in the 84th percentile of its annual range, demonstrating the recent rate of call buying, relative to put buying, is faster than usual.

  • DECK's unexpected forecast for a first-quarter loss didn't sit well with the brokerage crew. Among the group to downwardly adjust their positions was Jefferies who lowered its price target to $75 from $100 and downgraded its rating to "hold" from "buy." As such, Deckers Outdoor Corp is positioned has already dipped 13.2% out of the gat to $73.29. Before last night's dismal report, eight analysts had deemed the stock worthy of a "strong buy" endorsement, while just two considered it a "hold." Furthermore, the average 12-month price target of $89.88 denotes expected upside to the shares' current perch.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 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: service@sir-inc.com

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

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