Schaeffer's Trading Floor Blog

Analyst Downgrades: Pfizer, Boston Scientific, and Ancestry.com

Analysts downwardly revised their ratings on PFE, BSX, and ACOM

by 11/27/2012 9:20 AM
Stocks quoted in this article:

Analysts are weighing in today on biopharmaceutical company Pfizer Inc. (NYSE:PFE - 24.49), medical devices manufacturer Boston Scientific Corporation (NYSE:BSX - 5.66), and Internet family history resource Ancestry.com Inc (NASDAQ:ACOM - 31.58). Here's a quick roundup of today's bearish brokerage notes.

  • Despite a year-over-year gain of more than 28%, PFE was downgraded to "neutral" from "buy" at MKM Partners this morning. On the options front, short-term speculators have taken a shine to the security. Schaeffer's put/call open interest ratio (SOIR) for PFE stands at 1.42, indicating puts comfortably outnumber calls among the front three-months' series of options. This ratio is just one percentage point shy of a bearish peak, meaning near-term traders have rarely been more put-heavy toward the stock during the past 12 months.

  • BSX was cut to "market perform" from "outperform" at Bernstein ahead of the opening bell, a move that could chip away at the stock's year-to-date advance of about 6%. Nevertheless, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio sits at 134.76, confirming traders have bought to open a whopping 135 calls for every put during the past two weeks. This ratio ranks higher than 98% of similar readings taken during the past year, suggesting traders have been snapping up calls over puts at a near annual-high clip.

  • ACOM -- which has climbed roughly 38% so far this year -- was lowered to "hold" from "buy" at Cantor Fitzgerald today. Meanwhile, although short interest on the stock has fallen about 52% during the last two reporting periods, these bearish bets account for 11% of ACOM's available float -- indicating there are still a number of skeptics surrounding the security. Also of note, the equity's Schaeffer's Volatility Index (SVI) of 11% is just two percentage points above a yearly nadir. In other words, near-term options are relatively inexpensive right now.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.