Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on May 4, 2015 at 9:59 AM
Updated on Jul 2, 2020 at 1:48 PM
  • Analyst Downgrades

Analysts are weighing in today on renewable energy focus SolarCity Corp (NASDAQ:SCTY), retailer Abercrombie & Fitch Co. (NYSE:ANF), and cable services provider Charter Communications, Inc. (NASDAQ:CHTR). Here's a quick roundup of today's bearish brokerage notes on SCTY, ANF, and CHTR.

  • SCTY has given back 2.3% this morning to trade at $60.18, after Baird lowered its opinion on the stock to "neutral," while slashing its price target to $65 from $76. Even with today's deficit, the security is 12.5% above its year-to-date breakeven level -- perhaps part of the reason call buying has been so popular of late. For instance, SolarCity Corp's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio comes in at 3.94 -- higher than 89% of similar readings from the past 12 months.Meanwhile, the firm is slated to take its turn in the earnings confessional after tomorrow's close.

  • Elsewhere, ANF is 2.3% lower today at $21.99, due to RBC initiating coverage on the shares with an "underperform" rating and $17 price target -- 22.7% below current levels and territory not seen since March 2009. Even before today, Abercrombie & Fitch Co. had given back over 21% in 2015, and short sellers have been rolling the dice on additional losses. By the numbers, nearly 35% of ANF's float is sold short, accounting for almost two weeks' worth of trading, at average daily volumes. There's a chance more struggles are ahead for the equity, too, given that six brokerage firms still deem it a "strong buy."

  • Amid increasing speculation the company could merge with Time Warner Cable Inc (NYSE:TWC), CHTR is up 1.5% today at $190.21, even after seeing some bearish analyst attention. Specifically, the stock's price target was reduced at Baird (to $190) and Canaccord Genuity (to $205), though the latter kept its "buy" endorsement. Elsewhere, Raymond James raised its price target to $210 -- territory yet to be charted. All of this comes after the company reported disappointing first-quarter numbers on Friday. On the sentiment front, Charter Communications, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 2.06 ranks in the 96th annual percentile, meaning short-term speculators have rarely been as put-skewed as they are now.
Published on May 1, 2015 at 9:29 AM
Updated on Jul 2, 2020 at 1:47 PM
  • Analyst Downgrades
Analysts are weighing in on solar energy concern SunPower Corporation (NASDAQ:SPWR), professional networking website LinkedIn Corp (NYSE:LNKD), and medical device maker Insulet Corporation (NASDAQ:PODD). Here's a quick roundup of today's bearish brokerage notes on SPWR, LNKD, and PODD.

  • SPWR reported its first quarterly earnings loss since 2013 -- though the firm beat expectations on an adjusted per-share basis -- sending the shares down 4.2% ahead of the bell. In response, Cowen and Company cut its price target on the stock to $43 from $46. Heading into today's session, SunPower Corporation had been trending upwards, with the shares up nearly 25% year-to-date to finish Thursday at $32.19. However, traders have favored puts over calls in the options pits, as SPWR's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.51 reads in the 91st percentile of its annual range. Elsewhere, short interest decreased by 25% over the past two reporting periods, but still accounts for 10.5% of SPWR's available float. 
  • The shares of LNKD have plummeted 20.2% in pre-market trading, after the firm dramatically cut its revenue forecast for the current quarter. Reacting were no fewer than 21 brokerage firms, which all lowered their price targets and/or ratings on LinkedIn Corp. Specifically, the most dramatic cuts came from Brean Capital (to $172), FBR (to $180), and Wedbush (to $200). Technically speaking, LNKD settled yesterday at $252.13, and is poised to fill its early February bull gap out of the gate. What's more, today's drop will likely send LNKD south of its 80-day moving average, which has served as a key level of support in 2015. In the options pits, short-term traders have been more put-skewed than usual, as LNKD's Schaeffer's put/call open interest ratio (SOIR) of 1.04 is higher than 67% of all similar readings from the past year. 
  • PODDā€‹ reported a steeper-than-expected first-quarter losssending the shares 13% lower -- and primed for annual-low territory -- in electronic trading. The news prompted no fewer than six brokerage firms to lower their price targets on the equity, such as J.P. Morgan Securities (to $26) and Wedbush (to $36). Looking back, today's fall is more of the same for Insulet Corporation, as the shares are down more than 35% year-to-date to close Thursday at $29.85 -- in large part due to a post-earnings bear gap in January. Despite this downtrend, options traders have been overwhelmingly bullish on the stock -- over the past 50 days at the ISE,CBOE, and PHLX, 81.16 PODD calls were bought to open for every put, which is a higher ratio than 94% of all other readings from the past year.
Published on Apr 29, 2015 at 9:44 AM
Updated on Jul 2, 2020 at 1:47 PM
  • Analyst Downgrades
Analysts are weighing in today on microblogging platform Twitter Inc (NYSE:TWTR), chicken wing king Buffalo Wild Wings (NASDAQ:BWLD), and 3-D printing specialist Stratasys, Ltd. (NASDAQ:SSYS). Below, we'll break down how options traders are positioning themselves, and how much speculators are willing to pay for their bets on TWTR, BWLD, and SSYS. 

  • TWTR's first-quarter earnings report was leaked about an hour early yesterday, which briefly halted trading before sending the shares nearly 18% lower to finish Tuesday at $42.27. What's more, the shares of Twitter Inc have plunged more than 5% out of the gate, and are now testing the round-number $40 level, as traders continue to react to the company's disappointing revenue figures and bleak 2015 sales forecast. Plus, the stock landed on the short-sale restricted (SSR) list. In response, no fewer than 21 brokerage firms downwardly revised their price targets on the security, with the largest cuts coming from Cowen and Company (to $38) and Stifel (to $36). Heading into earnings, traders have favored calls over puts in the options pits, as TWTR's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.09 ranks in the 98th percentile of its annual range.
  • The shares of BWLD are down 10.7% at $163.99 -- and on the SSR list -- after the company posted first-quarter earnings that failed to meet consensus estimates, possibly due in part to a 41% increase in the price of poultry. Reacting were Jefferies, Cowen and Company, and Barclays, which cut their price targets to $172, $208, and $195, respectively. On the charts, Buffalo Wild Wings is now on pace to end beneath its 200-day moving average for the first time since late October, and is 8.9% in the red year-to-date. However, sentiment in the options pits has been bullish, as BWLD's 10-day ISE/CBOE/PHLX call/put volume ratio of 1.18 is higher than 73% of all equivalent readings from the past year. Meanwhile, short interest surged by 11.9% over the last reporting period, and now accounts for nearly 10% of BWLD's available float. 
  • SSYS said in a statement that its first-quarter earnings will fail to topple expectationssending the shares down roughly 20% to a new three-year low of $41.14 -- and onto the SSR list -- out of the gate. In response, no fewer than eight brokerage firms revised their price targets and/or ratings on the stock. For instance, Piper Jaffray cut its price target to $45 from $64 while keeping its "neutral" rating, and Needham cut its price target to $54 from $70 while underscoring its "buy" opinion. On the other hand, Craig Hallum upgraded Stratasys, Ltd. to "buy" from "hold," but did decrease its price target to $52 from $68. Technically speaking, SSYS has been a long-term underperformer, with the shares down nearly 50% year-to-date. Not surprisingly, puts have been prominent in the options pits, as SSYS' 50-day ISE/CBOE/PHLX put/call volume ratio of 0.87 is higher than 85% of all similar readings from the past year. 
Published on Apr 28, 2015 at 9:29 AM
Updated on Jul 2, 2020 at 1:46 PM
  • Analyst Downgrades

Analysts are weighing on hotel and casino concern Wynn Resorts, Limited (NASDAQ:WYNN), semiconductor firm Amkor Technology, Inc. (NASDAQ:AMKR), and storage and organization product maker Container Store Group Inc (NYSE:TCS). Here's a quick roundup of today's bearish brokerage notes on WYNN, AMKR, and TCS.

  • WYNN woke up to a price-target cut to $159 from $189 by Susquehanna (which also reaffirmed its "positive" rating of the stock), sending the shares 0.6% lower in electronic trading. The price-target cut comes just ahead of the firm's turn in the earnings spotlight tonight. Technically speaking, Wynn Resorts, Limited has been an underperformer recently, with the shares down over 33% year-over-year to settle Monday at $128.83. However, traders have shown a distinct preference for calls over puts in the options pits, as WYNN's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.71 is higher than 96% of all similar readings from the past year. Meanwhile, the brokerage bunch has stayed skeptical of the equity, as 60% of covering analysts rate it a "hold."
  • The shares of AMKR are down 10.5% ahead of the bell, after the company forecast current-quarter profits below consensus estimates. In response, Topeka Capital lowered its price target on the stock to $9 from $11, but maintained a "buy" opinion. On the charts, Amkor Technology, Inc. has taken a step back since hitting a year-to-date high of $10.13 on March 3, down 21.6% to finish yesterday at $7.94. Many traders are likely bemoaning today's drop -- over the past 50 days at the ISE/CBOE/PHLX, 23.83 AMKR calls have been bought to open for every put, which is a higher ratio than 93% of all equivalent readings from the last 12 months. On the flip side, short interest surged by roughly 62% over the past two reporting periods, and now accounts for 7.3% of AMKR's available float. It would take these bettors over a week to cover their positions, at average trading volumes.
  • TCS posted fiscal fourth-quarter earnings that failed to meet analysts' predictions and offered weak guidance for fiscal 2015, prompting J.P. Morgan Securities and Sterne Agee to lower their price targets, to $21 and $17 respectively. In addition, Jefferies slashed its price target to $15 from $21. At last check, the shares of Container Store Group Inc were 24.4% lower in pre-market trading, and could explore record lows. Prior to today's drop, though, the stock had been trending upwards, with the shares up 13.4% year-to-date to close Monday at $21.69. Today's plummet is likely music to the ears of short sellers, as over 26% of TCS' available float is sold short, which would take 14 sessions to cover, at average trading volumes. Meanwhile, seven out of nine covering analysts rate the equity a "hold" or "strong sell."
Published on Apr 27, 2015 at 9:46 AM
Updated on Jul 2, 2020 at 1:46 PM
  • Analyst Downgrades

Analysts are weighing on microblogging platform Twitter Inc (NYSE:TWTR), biopharmaceutical firm Akorn, Inc. (NASDAQ:AKRX), and 3-D printing concern 3D Systems Corporation (NYSE:DDD). Here's a quick roundup of today's bearish brokerage notes on TWTR, AKRX, and DDD.

  • Suntrust Robinson cut its rating on TWTR to "neutral" from "buy" while lowering its price target to $50 from $58, although the shares were last seen 1.9% higher to $51.78. Heading into today's session, Twitter Inc has been a technical standout, with the shares up 44.4% year-to-date. Short sellers have taken a shine to the equity, though, as short interest increased by 10.7% over the past reporting period -- and now comprises 5.3% of TWTR's available float. Meanwhile, the brokerage bunch remains skeptical, as 44% of covering analysts rate it a "hold" or "strong sell." Should TWTR report stronger-than-expected earnings tomorrow night, a mass exodus of bears could add fuel to the stock's fire. 
  • The shares of AKRX are 17.3% lower, after the firm announced that is restating its earnings reports for 2014 due to the discovery of several errors that upwardly misconstrued revenue figures. In response, J.P. Morgan Securities and Piper Jaffray both cut their price targets on Akorn, Inc. -- to $58 and $53, respectively -- with the former reaffirming its "overweight" rating, and the latter downgrading its opinion to "neutral" from "overweight." We believe that significant management changes will be needed to restore Akom's credibility," said Piper Jaffray, which also suggested a CFO change could be on the horizon. On the charts, AKRX was an outperformer, with the shares up over 131% year-over-year to hit a record high of $57.10 on Friday. However, options traders have been buying puts at a faster-than-usual clip lately. Drilling down, over the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 0.35 AKRX puts have been bought to open for every call, which is a higher ratio than 81% of all similar readings from the past year. 
  • After Friday's guidance-induced drop, DDD woke up to no fewer than seven price-target cuts, sending the shares 4.1% lower. The loftiest cuts came from Canaccord Genuity, which lowered its price target by $23 to $27 and its rating to "hold" from "buy," as well as Credit Suisse, which slashed its price target by $14 to $40 while reiterating a "neutral" rating. Short sellers have been active on the security, as 36.5% of its available float is sold short. It would take these bettors over four weeks to cover their positions, at average trading volumes. Meanwhile, a majority of analysts covering DDD are apprehensive, as two-thirds of them rate it a "hold" or worse. 

 

 

Published on Apr 24, 2015 at 9:16 AM
Updated on Jul 2, 2020 at 1:46 PM
  • Analyst Downgrades
Analysts are weighing in today on drugmaker Aerie Pharmaceuticals Inc (NASDAQ:AERI), vacation rental marketplace HomeAway, Inc. (NASDAQ:AWAY), and tech stock Ubiquiti Networks Inc (NASDAQ:UBNT). Here's a quick roundup of today's bearish brokerage notes on AERI, AWAY, and UBNT.

•    AERI has lost more than half of its value in pre-market trading, following disappointing eye drug trial results and a round of bearish brokerage notes. Specifically, no fewer than five analysts downwardly revised their price targets on the security -- including Cantor, which slashed its target to $12, and also reduced its rating on the shares to "hold" from "buy." This morning's anticipated bear gap could wipe out Aerie Pharmaceuticals Inc's year-over-year gains, which sat at 122%, based on last night's close at $35.39. In recent weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have been betting on (or hedging against) a move lower. AERI's 10-day put/call volume ratio is 3.55, indicating more than three calls have been bought to open for every put.

•    AWAY is smarting this morning after the company announced weaker-than-expected earnings and a major management shake-up. Analysts are throwing salt into the wound, too, with four brokerage firms cutting their price targets on the security. At last check, HomeAway, Inc. is down 5.2% ahead of the open. Last night, the stock settled at $32.17, up 8% in 2015. Elsewhere, options traders have been betting bearishly on AWAY in recent months, per its 50-day ISE/CBOE/PHLX put/call volume ratio of 0.80 -- which sits just 3 percentage points from an annual high.

•    Finally, UBNT is struggling ahead of the bell, after the firm issued disappointing preliminary results for its fiscal third quarter, and reported the resignation of its chief financial officer. This news was followed by a round of negative analyst attention, with four brokerage firms cutting their price targets on the stock -- including BMO, which slashed its target by $8 to $26, and lowered its outlook to "market perform" from "outperform." On the other hand, SunTrust Robinson boosted its price target on Ubiquiti Networks Inc to $42 from $37. Last night, the shares closed at $31.43 -- up 6% year-to-date -- but are poised to plunge 14% at the open. This is music to the ears of short sellers. More than one-third of UBNT's float is sold short, representing nearly three weeks' worth of buying power, at the equity's average daily trading levels.
Published on Apr 23, 2015 at 9:25 AM
Updated on Jul 2, 2020 at 1:45 PM
  • Analyst Downgrades

Analysts are weighing in today on telecom concern QUALCOMM, Inc. (NASDAQ:QCOM), gaming issue Las Vegas Sands Corp. (NYSE:LVS), and software firm Mobileiron Inc (NASDAQ:MOBL). Here's a quick roundup of today's bearish brokerage notes on QCOM, LVS, and MOBL.

  • QCOM is staring at a 2.3% pre-market loss, as the company's lowered full-year guidance overshadows a fiscal second-quarter earnings beat. The brokerage bunch is adding insult to injury, as no fewer than 11 analysts reduced their price targets on the shares -- the harshest of which came from Topeka Capital, which lowered its target to $67 from $70. It's been a rough year for QUALCOMM, Inc., which has dropped 7.3% to trade at $68.94, and was recently rejected by its 160-day moving average. Traders have responded accordingly, picking up bearish bets over bullish at a faster-than-usual rate, during the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). QCOM's 10-day put/call volume ratio of 0.98 ranks in the 89th percentile of its annual range.

  • LVS is down 3.4% ahead of the bell, following a disappointing trip to the earnings confessional, and a trio of price-target cuts. Specifically, J.P. Morgan Securities, Stifel, and Sterne Agee each lowered their price targets on the stock, which has lost nearly 28% year-over-year to rest at $56.39. Options traders are bearish toward Las Vegas Sands Corp., too, which has racked up a 10-day ISE/CBOE/PHLX put/call volume ratio of 1.73 -- higher than 97% of comparable readings from the past year.

  • Finally, MOBL offered up underwhelming first-quarter revenue guidance, prompting Raymond James to slash its price target on the stock to $11 from $14. As such, the shares are poised to plunge out of the gate, down nearly 33% in electronic trading -- which would drop Mobileiron Inc. into record-low territory. This represents quite a reversal in fortunes for the equity, which has outperformed the broader S&P 500 Index (SPX) by 12.2 percentage points over the last 40 sessions, and currently sits at $9.50. One group looking forward to the anticipated bear gap is short sellers, as 12.5% of MOBL's float is sold short -- which would take more than eight days to cover, at the security's average daily trading levels.
Published on Apr 22, 2015 at 10:02 AM
Updated on Jul 2, 2020 at 1:44 PM
  • Analyst Downgrades

Analysts are weighing in today on Internet issue Yahoo! Inc. (NASDAQ:YHOO), e-commerce power Alibaba Group Holding Ltd (NYSE:BABA), and burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG). Here's a quick roundup of today's bearish brokerage notes on YHOO, BABA, and CMG.

 

  • YHOO is 0.8% lower out of the gate, after a first-quarter earnings miss and a round of bearish brokerage notes. No fewer than 10 brokerage firms reduced their price targets on the Internet issue, including Barclays -- which lowered its target to $48 from $56. On the other hand, Credit Suisse and Pivotal Research upped their price targets to $68 and $49, respectively. Turning to the charts, it's been a rough year for Yahoo! Inc., which is down nearly 13% in 2015 to trade at $44.14. If this trend continues, the stock could get hit with additional negative attention, as 19 of 27 analysts rate YHOO a "buy" or better, and its consensus 12-month price target of $56.88 hasn't been touched in over 14 years.

     

  • Fresh off establishing a collaborative relationship with a pair of big auto brands, BABA saw its price target slashed by $20 to $98 at Jefferies. In early trading, the shares are down 0.6% at $81.90, and are 21% lower on a year-to-date basis. Like YHOO, Alibaba Group Holding Ltd appears vulnerable to a round of downgrades and/or additional price-target reductions. All 24 analysts tracking the equity consider it a "buy" or better, and its average 12-month price target of $107.49 stands in territory not charted since late December.

     

  • Finally, CMG is plunging out of the gate, following a disappointing turn in the earnings confessional -- which revealed weaker-than-expected same-store sales growth. Specifically, the restaurant stock was last seen 6.5% lower at $647.30, bringing it into the red on a year-to-date basis. Also weighing on Chipotle Mexican Grill, Inc. is a round of price-target cuts from no fewer than five analysts, and a downgrade to "market perform" from "outperform" at Raymond James (though Janney upped its fair value estimate to $825). CMG's early morning struggles are likely dampening the mood of recent call buyers. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.06 calls for every put -- a ratio that ranks higher than three-quarters of comparable readings from the previous year.

 

Published on Apr 20, 2015 at 9:30 AM
Updated on Jul 2, 2020 at 1:44 PM
  • General

Analysts are weighing in today on electric automaker Tesla Motors Inc (NASDAQ:TSLA), accessories designer Michael Kors Holdings Ltd (NYSE:KORS), and telecom concern Nokia Corporation (ADR) (NYSE:NOK). Here's a quick roundup of today's bearish brokerage notes on TSLA, KORS, and NOK.

  • TSLA was hit with a price-target cut to $165 from $175 at J.P. Morgan Securities, which also reiterated its "underweight" rating. The bearish note isn't particularly surprising, given the stock's 7% year-to-date deficit to trade at $206.79. In fact, additional price-target reductions and/or potential downgrades could come down the pike for Tesla Motors Inc. Right now, the equity's consensus 12-month price target of $262.38 represents a 27% premium to current trading levels, as well as territory not explored since last October. Also, the majority of covering analysts still rate the technical underperformer a "buy" or better.

  • Mizuho Securities weighed in on a number of fashion names, including KORS, with the brokerage firm lowering its outlook to "neutral" and its price target to $70. On the charts, Michael Kors Holdings Ltd has struggled greatly, plunging nearly 30% year-over-year, ushered lower by its 10-week moving average in 2015. In fact, the stock is sitting just above its annual low of $62.65, skimmed last week. Not surprisingly, bears have been upping the ante at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in recent weeks. KORS' 10-day put/call volume ratio across these exchanges is 0.97, in the 71st percentile of its annual range. Ahead of the bell, the stock is down 0.6%.

  • Finally, NOK is sitting on a 0.7% pre-market deficit, after receiving a downgrade to "hold" from "buy" at Jefferies (though the firm upped its price target to 7.87 euros). This bearish recommendation is par for the course, as two-thirds of analysts tracking Nokia Corporation have given it a "hold" or worse endorsement. On the charts, the equity has been wavering in the $7.50-$8.50 area for the better part of the past six months, and at $7.62, is down 3% year-to-date. Even recent buyout news has failed to lift NOK out of this technical range. Meanwhile, rumors are circulating that the firm could be ready to throw its hat back in the mobile phone ring as early as next year.
Published on Nov 3, 2014 at 9:28 AM
Updated on Jul 2, 2020 at 1:44 PM
  • General

Analysts are weighing in today on tech issues Twitter Inc (NYSE:TWTR) and Google Inc (NASDAQ:GOOGL), as well as oil-and-gas concern Exxon Mobil Corporation (NYSE:XOM). Here's a quick roundup of today's bearish brokerage notes on TWTR, GOOGL, and XOM.

  • TWTR received a pair of uninspiring analyst initiations in the wake of last week's steep sell-off. Specifically, Morgan Stanley started the shares with an "equal weight" rating and a price target of $42, while Monness Crespi Hardt initiated coverage with a "neutral" recommendation and a $40 price target. On Friday, the shares closed at $41.47 -- down 17% on the week -- and should the stock continue to struggle, there is more than enough room for another round of bearish brokerage notes. At present, 46% of those covering the shares maintain a "strong buy" rating, while the consensus 12-month price target of $51.97 stands at a 25% premium to the equity's current perch. In other news, Monster Worldwide, Inc. (NYSE:MWW) announced today it is launching a beta version of its recruitment platform on Twitter Inc.

  • Following in the footsteps of Monness Crespi Hardt, Morgan Stanley initiated coverage on GOOGL with an "equal weight" rating and a price target of $600 -- representing expected upside of less than 6% to the stock's current perch at $567.87. On the charts, Google Inc is sitting just 1.2% above its year-to-date breakeven line, yet option traders are keeping the faith. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.87 calls for each put during the past 10 sessions. Good news for those purchasing GOOGL's November-dated options -- the equity's Schaeffer's Volatility Index (SVI) of 20% ranks lower than all other readings taken over the past 12 months. In other words, the options market is pricing in the lowest volatility expectations of the year for GOOGL's front-month contracts.

  • On the heels of Friday's earnings-induced pop, XOM received mixed reviews from the brokerage bunch. J.P. Morgan Securities, for example, cut its price target on the shares to $98 from $101, while underscoring its "neutral" rating. Cowen and Company and Credit Suisse, on the other hand, raised their price targets to $108 and $100, respectively. Technically speaking, XOM is down 4.4% year-to-date to trade at $96.71, and has struggled to stage a move north of the century mark since July. Against this backdrop, option traders have taken the skeptical route, as evidenced by the equity's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.15, which ranks just 7 percentage points from an annual bearish peak. Echoing this is the security's Schaeffer's put/call open interest ratio (SOIR) of 0.97, which ranks higher than 61% of similar readings taken in the past year. Simply stated, short-term speculators are more put-skewed than usual. On the fundamental front, Exxon Mobil Corporation announced this morning it will be a founding member in MIT's Energy Initiative.
Published on Apr 16, 2015 at 9:22 AM
Updated on Jul 2, 2020 at 1:43 PM
  • General

Analysts are weighing in on data storage solutions specialist SanDisk Corporation (NASDAQ:SNDK), biopharmaceutical firm MannKind Corporation (NASDAQ:MNKD), and mining magnate ArcelorMittal SA (ADR) (NYSE:MT). Here's a quick roundup of today's bearish brokerage notes on SNDK, MNKD, and MT.

  • True to form, SNDK is bracing for an 8% plunge out of the gate, after the firm posted lower-than-expected first -quarter earnings, and forecast a drop in full-year revenue for the first time in three years. In order to reduce costs, SanDisk Corporation said it will cut roughly 5% of its workforce. Wall Street was quick to weigh in on SNDK following last night's results, with the stock receiving a slew of bearish brokerage notes. Included in the bunch were downgrades from BTIG (to "sell") and Credit Suisse (to "neutral"), as well as price-target cuts from Baird (to $60) and Nomura (to $50). Jefferies, meanwhile, raised its price target to $82 from $77, representing expected upside of 15.3% to last night's close at $71.12. Today's projected price move is just more of the same for a stock that's shed north of 27% in 2015, and should the shares continue this path lower, another round of downbeat analyst attention could be on the horizon. Currently, 62% of those covering SNDK maintain a "buy" or better rating.

  • RBC reduced its price target on MNKD by $3 to $10 -- but kept its "outperform" rating -- although this new target still rests at an 89.3% premium to Wednesday's settlement at $5.28. On the charts, the security has been hovering around its year-to-date breakeven line in recent weeks, and option traders have been rolling the dice on a breakout. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MannKind Corporation's 10-day call/put volume ratio of 9.57 ranks in the 85th annual percentile. Simply stated, calls have been bought to open over puts with more rapidity just 15% of the time within the past year.

  • MT is pointed 1.4% lower in electronic trading -- and on track to test its footing in double-digit territory -- after Goldman Sachs reduced its price target on the shares to 7.30 euros from 8 euros, and reiterated its "sell" recommendation. On the charts, the equity has been a long-term laggard, shedding 37% over the past 52 weeks to trade at $10.19. Option players have shown a distinct preference for calls over puts, however. For starters, MT's 10-day ISE/CBOE/PHLX call/put volume ratio of 41.50 rests 4 percentage points from a 52-week peak. Additionally, ArcelorMittal SA's Schaeffer's put/call open interest ratio (SOIR) of 0.63 sits lower than 95% of all comparable readings taken in the past 12 months. In other words, short-term speculators are more call-heavy than usual toward MT.
Published on Apr 17, 2015 at 9:34 AM
Updated on Jul 2, 2020 at 1:43 PM
  • General

Analysts are weighing in today on semiconductor concern Advanced Micro Devices, Inc. (NASDAQ:AMD), heavy machinery maker Manitowoc Company Inc (NYSE:MTW), and credit card issue American Express Company (NYSE:AXP). Here's a quick roundup of today's bearish brokerage notes on AMD, MTW, and AXP.

  • AMD is down 11.9% at the open to trade at $2.53, after the company's dreary first-quarter earnings report was met with price-target cuts from Wedbush (to $2.25) and Canaccord Genuity (to $2). While today's price move just echoes the equity's historical post-earnings performance, AMD could find a foothold in the $2.60 region -- an area that contained the shares' most recent pullback. On the sentiment front, traders have shown a fondness for puts over calls in the April-dated series, which expires at tonight's close. Specifically, AMD's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) is docked at a top-heavy 1.46. Drilling down, the April 2.50 strike is home to peak put open interest, with more than 67,000 contracts in residence.

  • MTW was hit with no fewer than six price-target cuts, after the firm said it would report a first-quarter pretax loss (subscription required) when it heads into the earnings confessional the evening of Wednesday, April 29. Baird, for example, reduced its price target to $26 from $28, while BMO downwardly revised its target by $2 to $18. Technically speaking, the stock has shed 39% since hitting a nearly six-year high of $33.50 last July, and more recently, has encountered a stern layer of resistance from its 180-day moving average. The security is extending this decline today, off 6.8% out of the gate at $20.29. Options traders, meanwhile, have been quick to initiate long puts in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Manitowoc Company Inc's 50-day put/call volume ratio of 2.18 rests higher than all other similar readings taken in the past year.

  • AXP is down 3.2%, following the blue chip's first-quarter revenue miss. What's more, a number of brokerage firms reduced their price targets on the shares; specifically, Bernstein (to $94), Credit Suisse (to $76), J.P. Morgan Securities (to $82), RBC (to $69), and UBS (to $82). On the charts, the stock put in a dismal performance in 2015, off 15.8% at $78.30, amid pressure from its 50-day moving average. However, option traders have shown a distinct preference for long calls over puts of late. Elsewhere, short interest plunged 20.6% in the latest reporting period, and now accounts for just 1.1% of American Express Company's available float.

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