Schaeffer's Trading Floor Blog

Analyst Downgrades: CarMax, Inc (KMX), Carnival Corporation, and Cirrus Logic, Inc. (CRUS)

Analysts downwardly revised their ratings on KMX, CCL, and CRUS

by 9/25/2013 9:38 AM
Stocks quoted in this article:

Analysts are weighing in today on used car retailer CarMax, Inc (NYSE:KMX), cruise operator Carnival Corporation (NYSE:CCL), and tech concern Cirrus Logic, Inc. (NASDAQ:CRUS). Here's a quick roundup of today's bearish brokerage notes.

  • Despite yesterday's stronger-than-expected second-quarter earnings report, KMX saw its rating lowered to "neutral" from "buy" at Goldman Sachs in pre-market action. On the charts, the stock has been a standout over the past year, tacking on 82%. What's more, KMX tagged a new record high of $52.47 during yesterday's session, and was last seen hovering at $51.79. Still, short-term traders in the options arena are pessimistic. KMX's Schaeffer's put/call open interest ratio (SOIR) of 1.32 ranks ranks higher than 78% of other such readings taken throughout the year, indicating short-term traders are more put-heavy than usual toward CarMax, Inc right now.

  • After announcing a 30% profit decline for the fiscal third quarter, CCL received multiple downgrades from the brokerage bunch. Specifically, JP Morgan, Susquehanna, Nomura, Credit Suisse, and Stifel Nicolaus slashed their price targets for the stock, while BofA-Merrill Lynch lowered its rating to "neutral" from "buy." Over the past month, CCL's shares have dropped 7.6% to trade at $34.54. Meanwhile, short interest grew 19.5% during the last two reporting periods, and now accounts for a healthy 3.2% of the stock's available float -- which would take more than a week to cover at Carnival Corporation's average pace of trading.

  • Finally, Northland initiated a "market perform" rating for CRUS ahead of today's opening bell. Over the past year, the stock has suffered a 39% loss, yet the brokerage bunch remains divided. In fact, CRUS maintains three "buy" or better endorsements, compared to three tepid "holds." Moreover, the stock's average 12-month price target of $22.67 represents a mere 3.9% discount to Cirrus Logic, Inc.'s current price of $23.60.

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