Schaeffer's Trading Floor Blog

Analyst Downgrades: Twitter Inc, UnitedHealth Group Inc., and Wells Fargo & Co

Analysts issued bearish notes on TWTR, UNH, and WFC

by 7/10/2014 8:58 AM
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Analysts are downwardly revising their ratings today on microblogging name Twitter Inc (NYSE:TWTR), insurance provider UnitedHealth Group Inc. (NYSE:UNH), and financial services firm Wells Fargo & Co (NYSE:WFC). Here's a quick look at today's bearish brokerage notes on TWTR, UNH, and WFC.

  • Social media stock TWTR has been in the brokerage spotlight this week, with SunTrust today trimming its price target on the shares to $50 from $55. This still represents a fairly high bar for Twitter Inc, which has dropped 40.2% year-to-date and is currently docked at $38.06. By comparison, TWTR's average 12-month price target stands at $44.06 -- which is still well north of resistance at the stock's declining 20-week moving average.

  • Jefferies downgraded UNH to "hold" from "buy," marking a relatively rare negative analyst note for the Dow component. Currently, UnitedHealth Group Inc. boasts roughly 78% "buy" or better recommendations. The stock is up 22.2% year-over-year, and -- at $82.74 -- is trading just a chip-shot from its recently tagged record high of $83.44. Regardless, with UNH due to report its second-quarter earnings one week from today, skepticism is heavy. In addition to today's downgrade, short interest on the blue chip rose 14.5% during the past two reporting periods.

  • With WFC on deck to announce its own second-quarter results tomorrow morning, Compass Point cut its price target on the shares to $48 from $49. Shares of Wells Fargo & Co ended yesterday's session at $52.19, so the brokerage firm is predicting downside of 8%. This negative outlook stands in contrast to the equity's solid price action. WFC has gained about 15% year-to-date, and has found reliable support at its 40-day and 80-day moving averages since last October.

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