Schaeffer's Trading Floor Blog

Analyst Downgrades: Twitter Inc, eBay Inc, and Whole Foods Market, Inc.

Analysts downwardly revised their ratings on TWTR, EBAY, and WFM

by 4/30/2014 9:36 AM
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Analysts are weighing in today on microblogging site Twitter Inc (NYSE:TWTR), online auction platform eBay Inc (NASDAQ:EBAY), and grocery chain Whole Foods Market, Inc. (NASDAQ:WFM). Here's a quick roundup of today's bearish brokerage notes.

  • TWTR's first-quarter earnings results were a disappointment on Wall Street. Following last night's quarterly event, more than a dozen brokerage firms downwardly adjusted their positions on the stock, including BofA-Merrill Lynch and J.P. Morgan Securities, which lowered their price targets to $36 from $40, and to $42 from $44, respectively, this morning. Out of today's gate, Twitter Inc has plunged 12.4% to trade at $37.85, extending its year-to-date deficit to 40.8%. Elsewhere, traders have upped the bearish ante on TWTR, as short interest climbed 11.4% during the last two reporting periods. Now, 46.7 million shares are sold short, which is equivalent to 14.1% of the stock's available float.

  • A number of brokerage firms also made bearish position adjustments on EBAY, after the company gave a gloomy current-quarter forecast last night. Among the skeptics were Atlantic Equities, which downgraded the stock to "neutral" from "overweight," and Jefferies, which cut its price target by $6 to $60. In the options pits, meanwhile, eBay Inc sports a Schaeffer's put/call open interest ratio (SOIR) of 0.37, which ranks 4 percentage points from a 12-month low. In other words, short-term option traders are more call-heavy than usual toward EBAY right now, despite the shares being down 13.6% from their March 6 intraday high of $59.65 to trade at $51.56.

  • WFM -- which is down 14.8% year-to-date to trade at $49.25 -- received a price-target cut to $63 from $66 at SunTrust Robinson this morning. Elsewhere, the stock sports 14 "strong buy" endorsements, compared to six "holds" and not a single "sell" suggestion. Plus, the average 12-month price target among analysts comes in at $59.46, representing expected upside of 21% from the shares' current price. Looking ahead, Whole Foods Market, Inc. is set to report fiscal second-quarter earnings after the close on Tuesday, May 6.

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