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This morning, RBC lowered its price target for Diamond Offshore Drilling, Inc. (DO - 55.75) to $67 from $80.

There could be additional price-target cuts in store for DO. The average 12-month price target -- as calculated by Thomson Reuters -- sits at $72.20, representing a premium of 30.7% to DO's annual nadir of $55.25 tagged earlier in the session.

According to Zacks, most of the brokerage bunch holds a pessimistic opinion of the oil and gas drilling company. While there are 13 "holds" and seven "sell" or worse recommendations, there are only four "buy" or better suggestions.

There appears to be plenty of negativity elsewhere on Wall Street. Short interest on the equity is up 4.6% over the past month, and now accounts for 17% of the security's available float. In fact, at DO's average pace of trading, it would take over seven days to buy back all of these bearish bets.

Options players also seem to be bearish toward DO, as evidenced by the stock's 10-day put/call volume ratio of 2.14 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio arrives in the 90th percentile of its annual range, signaling that traders on these exchanges have purchased bearish bets over bullish at a faster pace during the past couple of weeks.

Furthermore, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.98 ranks in the 73rd percentile of its annual range, indicating that near-term option traders are more negatively aligned toward DO than usual.

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