Stocks quoted in this article:
Analysts are weighing in today on Internet radio concern Pandora Media Inc (NYSE:P - 11.59), banking name PNC Financial Services (NYSE:PNC - 61.97), and casino operator MGM Resorts International (NYSE:MGM - 12.98). Here's a quick roundup of today's bearish brokerage notes.
- Despite an advance of more than 26% in 2013, P was downgraded to "neutral" from "outperform" at Wedbush ahead of the opening bell. The stock has also bested the broader S&P 500 Index (SPX) by nearly 30 percentage points during the past three months, but that hasn't deterred the skeptics. Short interest on P rose by more than 2% over the last two reporting periods, and now these bearish bets account for a formidable 33% of the security's available float. It would take roughly seven days to buy back these shorted shares, at the equity's average pace of trading.
- PNC -- which has tacked on more than 6% so far this year -- was cut to "market perform" from "outperform" at Wells Fargo this morning. This lack of confidence in the stock appears to be prevalent among the short-term options crowd, as well. Schaeffer's put/call open interest ratio (SOIR) for PNC checks in at 1.81, indicating puts nearly double calls among the front three-months' series of options. This ratio ranks higher than 99% of comparable readings collected within the last 12 months, signaling near-term speculators have rarely been more bearishly aligned toward the equity during the past 52 weeks.
- Last but not least, MGM was lowered to "hold" from "buy" at Deutsche Bank today -- a move that could chip away at the stock's year-to-date gain of roughly 12%. Meanwhile, call activity has been flourishing in the options pits. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio sits at 3.61, confirming calls bought to open have more than tripled puts during the past two weeks. This ratio is seven percentage points shy of a yearly peak, meaning traders have been snapping up calls over puts at a near annual-high pace.