Schaeffer's Trading Floor Blog

Analyst Downgrades: Netflix, Inc., Barrick Gold Corporation (USA), and SodaStream International Ltd

Analysts downwardly revised their ratings on NFLX, ABX, and SODA

by 1/15/2014 9:18 AM
Stocks quoted in this article:

Analysts are weighing in today on streaming entertainment giant Netflix, Inc. (NASDAQ:NFLX), mining name Barrick Gold Corporation (USA) (NYSE:ABX), and home beverage concern SodaStream International Ltd (NASDAQ:SODA). Here's a quick roundup of today's bearish brokerage notes.

  • Nomura initiated a "neutral" rating on NFLX, which has shed 8.2% already this year to trade at $337.96. Elsewhere, option speculators are wary toward the stock, as well. Netflix, Inc.'s 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.06 is just 2 percentage points shy of a 12-month peak. In other words, traders have picked up bearish bets over bullish at a near-annual-high rate during the past 10 weeks.

  • It's no wonder Haywood downgraded ABX to "hold" from "buy" this morning, as the stock is down 48.5% on a year-over-year basis to trade at $17.80 (though the firm did raise its price target by a slim C$0.50 to C$20.50). Meanwhile, the equity sports a Schaeffer's put/call open interest ratio (SOIR) of 0.34, which ranks 1 percentage point from an annual low. This means short-term option traders have rarely been more call-heavy toward Barrick Gold Corporation (USA) during the past 12 months. An unwinding of these bullish bets could send the shares further south in the near future.

  • SODA took a heavy hit on the charts on Monday, after reporting lower-than-expected preliminary 2013 results. In fact, the shares have shed a whopping 23.9% week-to-date to trade at $37.99. Meanwhile, short interest on SodaStream International Ltd makes up 47.3% of the stock's float. This represents more than nine sessions' worth of pent-up buying demand, at the equity's average pace of trading.

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