Schaeffer's Trading Floor Blog

Analyst Update: Hawaiian Holdings, Inc., JA Solar Holdings Co., Ltd., and QLogic Corporation

Analysts adjusted their ratings on Hawaiian Holdings, Inc. (HA), JA Solar Holdings Co., Ltd. (ADR) (JASO), and QLogic Corporation (QLGC)

by 1/30/2015 12:21 PM
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Analysts are weighing in today on Hawaiian Airlines parent Hawaiian Holdings, Inc. (NASDAQ:HA), alternative energy concern JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), and networking specialist QLogic Corporation (NASDAQ:QLGC). Here's a quick look at today's brokerage notes on HA, JASO, and QLGC.

  • Shares of HA are in free fall this morning, down over 26% to hit $19.59, following in-line fourth-quarter earnings and news that a key revenue measure for the company will decline in the first quarter. (However, the security is still up a staggering 92.8% on a year-over-year basis.) In response, Cowen and Company cut its price target to $24 from $27, while Deutsche Bank raised its price target to $31 from $27 while underscoring a "buy" rating. Meanwhile, bearish sentiment in Hawaiian Holdings, Inc.'s options pits is ramping up, with the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.58 resting in the 87th percentile of its annual range. The brokerage bunch is divided on the stock, with 43% rating it a "strong buy," and the remaining 57% doling out a "hold" rating.

  • On the other hand, JASO is up about 1.2% today to trade at $7.87, after RBC bumped its price target by $1 to $13 while upgrading the stock to "outperform" from "sector perform." Year-over-year, the equity has shed over 14% of its value. The brokerage bunch is still optimistic about JA Solar Holdings Co., Ltd. (ADR), though, with three out of four covering analysts rating the stock a "buy" or better. Even so, sentiment in the options pits is bearish, with JASO's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.97 sitting higher than all but 18% of similar readings taken in the last year. It is worth noting that near-term options for JASO are historically cheap, per its Schaeffer's Volatility Index (SVI) of 54%, which is in the 16th percentile of its annual range.

  • QLGC is also headed higher today, up roughly 3.4% to hit $13.12, while notching a two-year high of $14.20 along the way. Last night, QLogic Corporation released an impressive earnings report, prompting three brokerage firms to up their price targets on the stock. Specifically, RBC raised its price target to $15 from $13 while underscoring an "outperform" rating, BMO lifted its price target to $15.50 from $14.50 while upgrading its expectation to "outperform" from "market perform," and D.A. Davidson increased its price target to $18 while reiterating a "buy" recommendation. Despite the good news, sentiment in the options pits is bearish, with QLGC's Schaeffer's put/call open interest ratio (SOIR) of 0.60 sitting higher than 80% of all similar readings taken over the past year.

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The Week Ahead: Jobs Data and Earnings from Exxon Mobil Corporation, Twitter, Inc., and General Motors

Next week's calendar features the payrolls report and earnings from Exxon Mobil Corporation (XOM), Twitter Inc (TWTR), and General Motors Company (GM)

by 1/30/2015 11:55 AM
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The Labor Department's closely watched nonfarm payrolls report will punctuate another busy week in the earnings confessional, with Exxon Mobil Corporation (NYSE:XOM), Twitter Inc (NYSE:TWTR), and General Motors Company (NYSE:GM) among the big names reporting. Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

Monday

  • The first week of February kicks off with personal income and spending data, the Markit purchasing managers' manufacturing index (PMI), the Institute for Supply Management's (ISM) manufacturing index, and construction spending. Exxon Mobil (XOM), Advent Software (ADVS), Cliffs Natural Resources (CLF), Hartford Financial (HIG), Owens-Illinois (OI), Pitney Bowes (PBI), and Sysco (SYY) will release earnings.

Tuesday

  • Tuesday's docket includes motor vehicle sales and factory orders. Walt Disney (DIS), BP (BP), Chipotle (CMG), Aetna (AET), Arch Coal (ACI), Archer Daniels Midland (ADM), Array Biopharma (ARRY), Gannett (GCI), Gilead Sciences (GILD), IAC/InterActiveCorp (IACI), Myriad Genetics (MYGN), National-Oilwell Varco (NOV), New York Times (NYT), Take-Two Interactive Software (TTWO), and UPS (UPS) will step into the earnings spotlight.

Wednesday

  • ADP's employment report, the ISM non-manufacturing index, and the Energy Information Administration's (EIA) petroleum status report come out on Wednesday. Merck (MRK), General Motors (GM), Keurig Green Mountain (GMCR), 21st Century Fox (FOXA), Allstate (ALL), Automatic Data Processing (ADP), Atmel (ATML), Boston Scientific (BSX), Clorox (CLX), Glu Mobile (GLUU), GW Pharmaceuticals (GWPH), Humana (HUM), iRobot (IRBT), Level 3 Communications (LVLT), Marathon Petroleum (MPC), Motorola Solutions (MSI), NXP Semiconductor (NXPI), Ralph Lauren (RL), Sony (SNE), Suncor Energy (SU), Tableau Software (DATA), Under Armour (UA), Weatherford (WFT), Whirlpool (WHR), and Yum! Brands (YUM) will report earnings.

Thursday

  • On Thursday, weekly jobless claims, productivity and unit labor costs, and international trade data are slated for release. Twitter (TWTR), GoPro (GPRO), LinkedIn (LNKD), Sirius XM (SIRI), Activision Blizzard (ATVI), AstraZeneca (AZN), Buffalo Wilds Wings (BWLD), Dunkin Brands (DNKN), Expedia (EXPE), LeapFrog (LF), Lions Gate Entertainment (LGF), Michael Kors (KORS), Nu Skin (NUS), ON Semiconductor (ONNN), Pandora Media (P), Philip Morris (PM), Sierra Wireless (SWIR), Sprint (S), Symantec (SYMC), Teva Pharmaceutical Industries (TEVA), and Yelp (YELP) will step into the earnings confessional.

Friday

  • The highly anticipated nonfarm payrolls report comes out on Friday. Alcatel-Lucent (ALU), CBOE Holdings (CBOE), Madison Square Garden (MSG), and Moody's (MCO) will release earnings.

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Analyst Upgrades: Amazon.com, Inc., Visa Inc., and Biogen Idec Inc.

Analysts upwardly revised their ratings on Amazon.com, Inc. (AMZN), Visa Inc (V), and Biogen Idec Inc (BIIB)

by 1/30/2015 10:00 AM
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Analysts are weighing in today on e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN), credit card issue Visa Inc (NYSE:V), and biopharmaceutical firm Biogen Idec Inc (NASDAQ:BIIB). Here's a quick roundup of today's bullish brokerage notes on AMZN, V, and BIIB.

  • AMZN is up 10.9% at $345.69, after the company's fourth-quarter profit handily beat analysts' estimate. The news was met with a round of upbeat analyst attention, with a price-target boost to $400 from $380 at Jefferies, and a $75 price-target hike to $425 at Benchmark, included in the bunch. Heading into today's session, the shares had done little to inspire confidence in 2014, and were sitting just 0.5% above their year-to-date breakeven mark. If the shares are able extend today's rally, another round of upwardly revised price targets or an unwinding of put positions could be on the horizon. Amazon.com, Inc.'s average 12-month price target of $359.11 is within chip-shot of current trading levels.

  • V received no fewer than five price-target hikes, after the firm unveiled a stronger-than-expected fiscal first-quarter earnings report, and announced a four-for-one stock split that will go into effect on Thursday, March 19. Weighing in on the security were Goldman Sachs, which raised its price target by $10 to $280, and SunTrust Robinson, which upped its target price to $310 from $290. FBR, however, downgraded its outlook on V to "market perform" from "outperform," citing a challenging environment and concerns over valuation. The stock had already received love from the brokerage bunch in the lead-up to last night's results, yet options traders were skeptical. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, Visa Inc's 10-day put/call volume ratio of 1.01 ranks in the 75th annual percentile. These bearish bettors could be hitting the bricks, with V up 5.6% to trade at $261.82.

  • BIIB hit a fresh record peak of $397 out of the gate, and was last seen up 11% at $392.04. Sparking the burst of buying power is a a better-than-forecast fourth-quarter earnings report, upbeat full-year outlook, and a bevy of bullish brokerage notes. BMO, for instance, raised its price target to $495 from $474, while Cowen and Company raised its target price to $425 from $389. Both brokerage firms maintained their "outperform" ratings. Should the shares add to their 15% year-to-date advance, more price-target hikes -- or a continued shift in sentiment in the options pits -- could come down the pike. The stock's consensus 12-month price target of $383 stands at a discount to Biogen Idec Inc's present perch.

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Analyst Downgrades: Alibaba Group Holding Limited, Deckers Outdoor Corporation, and Google Inc.

Analysts downwardly revised their ratings on Alibaba Group Holding Ltd (BABA), Deckers Outdoor Corp (DECK), and Google Inc (GOOGL)

by 1/30/2015 9:43 AM
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Analysts are weighing in today on Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA), footwear seller Deckers Outdoor Corp (NYSE:DECK), and tech titan Google Inc (NASDAQ:GOOGL). Here's a quick roundup of today's bearish brokerage notes on BABA, DECK, and GOOGL.

  • Following yesterday's lackluster earnings report -- and a resultant 9% loss -- BABA is getting hit with a round of bearish brokerage notes. Specifically, no fewer than nine analysts reduced their price targets on the stock -- the deepest of which came from Raymond James, which slashed its target by $12 to $108, but preserved its "outperform" rating. Out of the gate, though, Alibaba Group Holding Ltd is down 1.7%. This negative attention represents a change of pace for the brokerage crowd, as all 21 firms tracking the stock rate it a "buy" or better. What's more, BABA's consensus 12-month price target of $117.95 stands at a 33.6% premium to the current price of $88.30. In other news, the company's financial services affiliate is reportedly eyeing a 2016 initial public offering.

  • DECK is getting hit with negative analyst notes, after cutting its current-quarter and full-year forecasts, and reporting disappointing fiscal third-quarter results. Specifically, no fewer than nine analysts lowered their price targets, including Buckingham, which trimmed its target to $75 from $81, and reaffirmed its "neutral" opinion. Accordingly, Deckers Outdoor Corp has plunged 15.1% out of the gate to trade at $69.90 -- and, in the process, hit a new annual low of $67.30. This ought to be music to the ears of short sellers. More than 19% of DECK's float is dedicated to short interest, which represents nearly eight times the stock's typical daily trading level.

  • Finally, GOOGL is up 2.4% this morning at $525.31, despite last night's earnings miss and a rush of downbeat brokerage attention. Specifically, no fewer than 11 analysts reduced their price targets, compared to four that upped them. Longer term, Google Inc shares have struggled since topping out at $615.04 in late February, shedding 14.6%. Meanwhile, these option bears are still holding out hope for an eleventh-hour reversal in the stock.

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Buzz Stocks: Intercept Pharmaceuticals, Inc., Gilead Sciences, Inc., and The Manitowoc Company, Inc.

Today's stocks to watch in the news include Intercept Pharmaceuticals Inc (ICPT), Gilead Sciences, Inc. (GILD), and Manitowoc Company Inc (MTW)

by 1/30/2015 9:21 AM
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Futures are pointed sharply lower this morning, as traders react to fourth-quarter gross domestic product (GDP) data. Meanwhile, among specific equities in focus are drugmakers Intercept Pharmaceuticals Inc (NASDAQ:ICPT) and Gilead Sciences, Inc. (NASDAQ:GILD), as well as big machinery manufacturer Manitowoc Company Inc (NYSE:MTW).

  • ICPT is nearly 28% higher in electronic trading -- and on pace to fill its early November bear gap -- after the Food and Drug Administration (FDA) granted the firm's lead treatment for nonalcoholic steatohepatitis (NASH), obeticholic acid, with "breakthrough therapy designation." The stock has done well in 2015, tacking on 9.4% to trade at $170.69, yet sentiment is skewed toward the skeptical side. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.04 ranks in the 74th annual percentile. Elsewhere, nearly 23% of Intercept Pharmaceuticals Inc's float is sold short, and would take nearly a week to cover, at ICPT's average daily trading volume.

  • GILD is also up ahead of the bell, after the FDA approved a pair of fixed-dose HIV drugs -- one produced by Johnson & Johnson (NYSE:JNJ), and one by Bristol-Myers Squibb Co (NYSE:BMY) -- that use a boosting agent developed by the biopharmaceutical firm. On the charts, GILD has been charting a path higher over the past 52 weeks, adding nearly 28% to linger at $104.18. Not surprisingly, short-term speculators have shown a preference for calls over puts, as evidenced by the security's Schaeffer's put/call open interest ratio (SOIR) of 0.67, which ranks lower than 73% of similar readings taken in the past year. This optimism is shared elsewhere on the Street, as well, with 76% of covering analysts maintaining a "buy" or better rating. Looking ahead, Gilead Sciences, Inc. is slated to take its turn in the earnings confessional after next Tuesday's close.

  • Amid pressure from activist investors -- including Carl Icahn -- MTW announced it is splitting itself into two separate companies, one for its crane manufacturing business, and one for its food service division. The news came as the firm also unveiled its fourth-quarter earnings report. On the charts, the equity has had a dreary start to the year, down 12.9% at $19.24. Against this backdrop, options traders have been placing bearish bets over bullish at a faster-than-usual clip, per Manitowoc Company Inc's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.80, which ranks in the 60th annual percentile. Echoing this is the security's SOIR of 0.77, which ranks higher than 85% of similar readings taken in the past year. Ahead of the bell, MTW is pointed 4.5% higher.

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