Schaeffer's Trading Floor Blog

Analyst Downgrades: Biogen Idec, Tyco International, and Intel

Analysts downwardly revised their ratings on BIIB, TYC, and INTC

by 9/10/2012 9:08 AM
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Analysts are weighing in today on biotech firm Biogen Idec Inc. (NASDAQ:BIIB - 152.50), diversified products provider Tyco International Ltd. (NYSE:TYC - 56.63), and semiconductor issue Intel Corporation (NASDAQ:INTC - 24.19). Here's a quick roundup of today's bearish brokerage notes.

  • BIIB was cut to "neutral" from "buy" at UBS in pre-market action after the company announced that it sold its royalty and other rights relating to its Benlysta drug to DRI Capital. Although the equity boasts a 52-week gain of about 69%, puts are still the options of choice among the short-term crowd, as evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.52. This ratio registers in the 80th percentile of its annual range, signaling that near-term speculators have been more put-heavy toward the security just 20% of the time during the past year.

  • TYC was downgraded to "neutral" from "overweight" at J.P. Morgan this morning, although the brokerage firm also upped its price target to $60 from $58. With a year-over-year gain of close to 43%, it stands to reason that TYC calls trump puts in the options pits. In fact, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 20-day call/put volume ratio of 51.91, indicating that traders have bought to open a whopping 52 calls for every put during the past month.

  • Despite a 12-month climb of roughly 23%, INTC saw its price target lowered $30 from $33 at JMP Securities, while J.P. Morgan and Bernstein also downwardly adjusted their respective price targets. Options players don't appear too confident in the stock, either, which sports a 10-day ISE/CBOE/PHLX put/call volume ratio of 1.22 -- confirming that puts bought to open have outnumbered calls during the past two weeks. This ratio ranks in the bearishly skewed 74th annual percentile, denoting a stronger-than-usual preference for puts over calls.

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