Schaeffer's Trading Floor Blog

Analyst Downgrades: NVIDIA, Tractor Supply Company, and IAC/InterActiveCorp

Analysts downwardly revised their ratings on NVDA, TSCO, and IACI

by 12/4/2012 9:07 AM
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Analysts are weighing in today on graphics chip maker NVIDIA Corporation (NASDAQ:NVDA - 11.75), farm products retailer Tractor Supply Company (NASDAQ:TSCO - 88.77), and online consumer services provider IAC/InterActiveCorp (NASDAQ:IACI - 47.17). Here's a quick roundup of today's bearish brokerage notes.

  • NVDA -- which has shed about 24% on a year-over-year basis -- was hit with a price-target cut to $12 from $15 at Susquehanna this morning. Ahead of this bearish move, the stock was still seeing plenty of call activity. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 6.48 for NVDA, indicating calls bought to open have outnumbered puts by a margin of more than six to one during the past couple of weeks. This ratio ranks higher than 77% of comparable readings gathered within the last 12 months, denoting a stronger-than-usual preference for calls over puts.

  • Despite a year-to-date gain of roughly 27%, TSCO saw its price target lowered to $105 from $115 at Suntrust Robinson ahead of the open. Meanwhile, a number of near-term speculators remain bullishly biased toward the security. Schaeffer's put/call open interest ratio (SOIR) for TSCO sits at 0.82, signaling calls outpace puts among options with a shelf life of three months or less. This ratio is docked in the 33rd percentile of its annual range, confirming short-term traders have been more call-heavy toward the stock just one-third of the time during the past year.

  • Down about 3% in pre-market trading, IACI was downgraded to "sell" from "neutral" at Goldman Sachs today -- a move that could cut into the equity's gain of nearly 11% so far this year. Elsewhere, bearish speculation has been gaining traction on the security lately. Short interest on IACI spiked by close to 19% during the last two reporting periods, and now accounts for about 5.5% of the stock's available float. It would take roughly four sessions to unwind these shorted shares, at the equity's average pace of trading.

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