Schaeffer's Trading Floor Blog

Analyst Downgrades: NVIDIA, DuPont, and Exelon

Analysts downwardly revised their ratings on NVDA, DD, and EXC

by 11/5/2012 9:09 AM
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Analysts are weighing in today on graphic chip maker NVIDIA Corporation (NASDAQ:NVDA - 12.49), chemical concern E. I. du Pont de Nemours and Co (NYSE:DD - 44.15), and utility stock Exelon Corporation (NYSE:EXC - 32.77). Here's a quick roundup of today's bearish brokerage notes.

  • As quarterly earnings loom on the horizon, NVDA saw its price target lowered to $13 from $16 at BMO in pre-market action. The equity has surrendered close to 16% from the year-ago period, yet short-term bulls seem unfazed by this technical weakness. The security's Schaeffer's put/call open interest ratio (SOIR) sits at 0.40, indicating calls more than double puts among the front three-months' series of options. This ratio ranks in the 34th annual percentile, reflecting a stronger-than-usual preference for near-term calls over puts lately.

  • Down more than 9% on a year-over-year basis, DD was downgraded to "neutral" from "overweight" at Piper Jaffray this morning. The equity has also lagged the broader S&P 500 Index (SPX) by about 13 percentage points during the past 60 sessions. Elsewhere, skeptics have taken a shine to the stock, as short interest ramped up by more than 5% during the most recent reporting period. These bearish bets now account for 3% of DD's available float. It would take more than six days to cover these shorted shares, at the security's average pace of trading.

  • Just days after reporting a 50% drop in third-quarter earnings, EXC was cut to "hold" from "buy" at Argus today -- a move that could steepen the equity's year-to-date loss of more than 24%. Nevertheless, call activity has been running hotter than usual on the security, according to data pulled from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). In fact, the stock's 20-day call/put volume ratio checks in at 2.14, confirming calls bought to open have outnumbered puts by a margin of more than two to one during the past month.

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