AAL

CyberArk Software, Macy's, Nordstrom Downgraded

CyberArk announced a costly acquisition along with its latest quarterly earnings

May 12, 2017 at 9:32 AM
facebook X logo linkedin


Analysts are weighing in on IT security specialist CyberArk Software Ltd (NASDAQ:CYBR), department store operator Macy's Inc (NYSE:M), and upscale retailer Nordstrom, Inc. (NYSE:JWN). Here's a quick roundup of today's bearish brokerage notes on shares of CYBR, M, and JWN.

CyberArk Earnings, Conjur Acquisition Spark Downgrade

CBYR shares have tumbled nearly 8% ahead of the bell following last night's earnings report. The Israeli online security firm topped first-quarter earnings and revenue estimates, but its second-quarter guidance for adjusted earnings of 23 to 25 cents per share on $61-62 million in revenue fell short of the consensus analyst forecast. Separately, CyberArk announced a deal to acquire Conjur for $42 million in cash.

In response, Summit Redstone downgraded CYBR stock to "hold." It's a rare bearish note for the equity, which has garnered 15 "buy" or better endorsements out of 18 total recommendations. As of Thursday night's close at $55.15, CYBR had notched a solid year-to-date gain of 21% -- but today's steep pullback from familiar resistance around $55 could easily elicit further downgrades or price-target cuts.

Price-Target Cuts Roll In After Macy's Post-Earnings Sell-Off

Analysts are lowering their expectations en masse after Macy's on Thursday confessed to a 5.2% drop in same-store sales during the first quarter. Jefferies and Cowen both lowered their M price targets yesterday, and today, five more target cuts have come through -- including a Citigroup slash to $23 from $30, which implies expected downside of 5.5% to Thursday's close at $24.35.

In the wake of its drastic post-earnings bearish gap, M stock is trading fractionally higher in electronic action. Short selling was restricted on Macy's shares yesterday, which may have helped drive bears into the retailer's options; Thursday's put volume of 81,592 contracts represented a new 52-week high, according to Trade-Alert.

JWN Joins the Ranks of Struggling Retail Stocks

After the closing bell sounded on Thursday, Nordstrom reported an unexpected decline in same-store sales for the first quarter, even as revenue for the period topped expectations. Analysts at J.P. Morgan responded by lowering their JWN price target to $35 from $41, while Maxim cut its target on the stock to $56 from $61.

JWN settled at $46.21 last night, but is set to open more than 5% lower. This big drop will push Nordstrom stock south of its 50-day moving average for the first time in over a month. It looks like short sellers were the smart money ahead of JWN earnings, with nearly one-quarter of the stock's float dedicated to short interest.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.