Analyst Downgrades: Cray Inc., The Rubicon Project Inc, and Tableau Software Inc

Analysts downwardly revised their ratings and price targets on Cray Inc. (CRAY), The Rubicon Project Inc (RUBI), and Tableau Software Inc (DATA)

Aug 3, 2016 at 9:54 AM

Analysts are weighing in on tech stocks Cray Inc. (NASDAQ:CRAY), The Rubicon Project Inc (NYSE:RUBI), and Tableau Software Inc (NYSE:DATA). Here's a quick roundup of today's bearish brokerage notes on CRAY, RUBI, and DATA.

CRAY has gapped 26.8% lower at $22.91 as analysts reacted negatively to the company's sharper-than-expected quarterly loss (subscription required) and downwardly revised revenue forecast. Specifically, Stifel and Pacific Crest cut their respective price targets on the stock to $40 and $35. While shareholders are smarting, short sellers should be in a good mood. Nearly 8% of CRAY's float is sold short, representing almost 10 times the stock's usual daily trading rate. Today, though, Cray Inc. shares are on the short-sale restricted (SSR) list, trading at their lowest levels since late October.

RUBI is down an even steeper 33.8% at $9.06 -- and earlier hit an annual low of $9.00 -- after the company lowered its full-year revenue forecast (even as it topped the consensus earnings view). Adding insult to injury, Raymond James, Needham, SunTrust Robinson, and RBC all downwardly revised their ratings to the equivalent of a "hold," while the latter two were among at least four brokerage firms to cut their price targets on the stock. Additional downgrades could be forthcoming, considering eight of nine analysts as of last night's close rated The Rubicon Project Inc a "buy" or better, versus one "hold" and not a single "sell." Like CRAY, today's losses have landed RUBI on the SSR list.

DATA is sliding after the analytics specialist failed to post a quarterly profit, down 8.5% at $51.60. In response, D.A. Davidson lowered its opinion to "neutral" and slashed its price target to $59. At least five other analysts cut their target prices, too, while another three upwardly revised theirs. Year-to-date, Tableau Software Inc has underperformed badly, and is now down 45%. Yet, short-term options traders are unusually call-skewed toward the stock. DATA's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.40, lower than 80% of all readings taken in the prior year.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!