Schaeffer's Trading Floor Blog

Analyst Downgrades: Pfizer Inc. (PFE), D.R. Horton, Inc. (DHI), and Dollar General Corp. (DG)

Analysts downwardly revised their ratings on PFE, DHI and DG

by 9/10/2013 9:39 AM
Stocks quoted in this article:

Analysts are weighing in today on biopharmaceutical giant Pfizer Inc. (NYSE:PFE), homebuilder D.R. Horton, Inc. (NYSE:DHI), and discount retailer Dollar General Corp. (NYSE:DG). Here's a quick roundup of today's bearish brokerage notes.

  • PFE -- along with other biopharmaceutical names -- saw its price target slashed to $27 from $31 at Jefferies in pre-market action. While PFE stands 17.4% higher on a year-over-year basis, the stock has been struggling to hold its ground as of late, dropping 3.1% in the last month to its current perch at $28.30. Regardless, short-term traders remain optimistic toward PFE. According to the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.56, calls nearly double puts among options expiring in three months or less. This ratio ranks just 7 percentage points from an annual nadir, indicating Pfizer, Inc.'s short-term traders have rarely been more call-heavy throughout the past year.

  • DHI was one of many in the homebuilding sector to receive a downgrade at Credit Suisse this morning. Specifically, the firm sliced its price target for the stock to $23 from $24, and lowered its rating to "neutral" from "outperform." Technically speaking, DHI has experienced heavy turbulence on the charts as of late. After tagging a six-year high of $27.75 in mid-May, the stock plummeted nearly 37% to its annual low of $17.52 on Sept. 5, and was last seen trading at $19.28. From a broader perspective, DHI now sits 2.4% lower on a year-over-year basis. With that being said, short interest grew 6.8% during the latest reporting period, bringing DHI's total number of shares sold short to 39.7 million. This represents 14% of the stock's available float, which would take more than a week to cover (in the event of an extended rally) at the D.R. Horton, Inc.'s average pace of trading.

  • Following last week's upbeat earnings report, DG jumped to a new record high of $57.80 on Sept. 5, and was last seen hovering just below the mark at $57.47. Stepping back, the stock now sports a year-to-date gain of 30.3%. Unimpressed by such price action, Barclays cut its rating for DG to "equal weight" from "overweight" ahead of today's session. Elsewhere, the brokerage bunch maintains a positive outlook. From the 17 analysts weighing in, Dollar General Corp. has received 12 "strong buy" endorsements, compared to just five "holds" and not a single "sell" or worse suggestion. Furthermore, the stock's consensus 12-month price target of $62.90 represents expected upside of 9.4% from its current price.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.