Schaeffer's Trading Floor Blog

Analyst Downgrades: Dendreon Corporation (DNDN), TiVo Inc. (TIVO), and KLA-Tencor Corporation (KLAC)

Analysts downwardly revised their ratings on DNDN, TIVO, and KLAC

by 8/28/2013 9:43 AM
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Analysts are weighing in today on biotech issue Dendreon Corporation (NASDAQ:DNDN), digital-recording concern TiVo Inc. (NASDAQ:TIVO), and chip manufacturer KLA-Tencor Corporation (NASDAQ:KLAC). Here's a quick roundup of today's bearish brokerage notes.

  • DNDN has yet to pick itself up since its post-earnings dip on the charts in early August. The stock -- which sports a year-to-date loss of 47.6% -- hit a new multi-year low of $2.76 during yesterday's session, and is now hovering one cent north of the mark at $2.77. As such, RBC became the latest of the brokerage bunch to downwardly revise its position on DNDN, slashing its price target to $3 from $5 late last night. Elsewhere, the stock has received eight tepid "holds" and seven "sell" or worse ratings, compared to just two "buy" or better endorsements. Furthermore, Dendreon Corporation's 12-month price target of $3.91 sits in territory not explored since its post-earnings drop.

  • Despite last night's upbeat second-quarter earnings report, TIVO saw its fair value sliced to $12.50 from $14.25 at Janney. (Jefferies, meanwhile, raised its price target to $15 from $14.) Technically speaking, TIVO stands almost 11% lower on a year-over-year basis. More recently, since tagging a three-year high of $14.10 in early June, the stock has fallen 22.2% to trade at $10.97. Still, TIVO's options traders have been betting on a turnaround in the near term. According to the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.22, calls outnumber puts by a margin of nearly 5-to-1 among options expiring in three months or less. This ratio ranks just 1 percentage point short of an annual nadir, indicating TiVo Inc.'s short-term traders have been more call-heavy just 1% of the time throughout the past year.

  • Finally, Northland initiated a "market perform" rating for KLAC ahead of today's session. While KLAC maintains a year-to-date gain of 14.5% on the charts, the stock has tumbled 7% in the past month to its current perch at $54.67. Meanwhile, short interest grew 26.5% during the last two reporting periods, bringing the total number of shares sold short to 6.7 million. This represents 4.1% of KLAC's available float, which would take four sessions to cover, in the event of an extended rally. Of note, KLA-Tencor Corporation recently replaced Regeneron Pharmaceuticals Inc (NASDAQ:REGN) as the 22nd most shorted stock on the NASDAQ 100.

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