Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on May 20, 2015 at 12:04 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in today on semiconductor firm Analog Devices, Inc. (NASDAQ:ADI), as well as retailers Stage Stores Inc (NYSE:SSI) and Target Corporation (NYSE:TGT). Here's a quick roundup of today's brokerage notes on ADI, SSI, and TGT.

  • ADI jumped to a 14-year high of $66.58 earlier -- and was last seen up 3.8% at $65.89 -- after the company's earnings beat prompted a rush of bullish analyst attention. Specifically, no fewer than 11 brokerage firms raised their price targets, with the loftiest expectations set by Pacific Crest -- which raised its target to $74 from $66. Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have been buying to open Analog Devices, Inc. puts over calls at a rapid-fire rate in recent months. The stock's 50-day put/call volume ratio of 1.55 ranks in the 88th percentile of its annual range.

  • SSI is just below breakeven today, at $16.48, following a slimmer-than-expected first-quarter lossThe shares have also received mostly negative brokerage attention, with Nomura, SunTrust Robinson, and B. Riley cutting their price targets -- though the latter also upgraded the security to "buy" from "neutral." Longer term, Stage Stores Inc has been a technical laggard, dropping 29% since hitting an annual high of $23.26 in late March. This has captured the attention of short sellers. During the two most recent reporting periods, short interest on SSI swelled 27.4%, and now makes up 11.4% of its total float. At the stock's average daily trading volume, it would take nearly three weeks to buy back all these bearish bets.

  • TGT is up 0.9% at $78.60, after Sterne Agee CRT lifted its price target by $2 to $73 on the retailer's first-quarter earnings beat and raised guidance. Long term, the shares are now up 37.4% year-over-year, and have been consolidating atop their supportive 120-day moving average for the past week. Despite this encouraging technical set-up, analysts remain skeptical. Twelve of 19 brokerage firms consider Target Corporation a "hold" or worse, and the stock's consensus 12-month price target of $79.82 is just a chip-shot away. In other words, the security could benefit from an additional round of positive analyst attention.
Published on May 21, 2015 at 9:24 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Upgrades

Analysts are weighing in today on e-commerce issue Alibaba Group Holding Ltd (NYSE:BABA), cloud concern Salesforce.com, inc. (NYSE:CRM), and home furnishings specialist Williams-Sonoma, Inc. (NYSE:WSM). Here's a quick roundup of today's bullish brokerage notes on BABA, CRM, and WSM.

  • Bernstein started coverage on BABA with an "outperform" rating and $120 price target -- matching the stock's all-time high -- sending the shares 1.1% higher in electronic trading. This is business as usual among analysts, who are extremely positive toward the stock. In fact, all 23 analysts tracking Alibaba Group Holding Ltd consider it a "buy" or better, and its average 12-month price target of $107.90 stands at a 19% premium to Wednesday's close at $90.70. The optimism is prevalent even as BABA has struggled on the charts. Since hitting the aforementioned record high of $120 last November, the shares have lost 24.4%, and to recover, will need to overcome a potential layer of resistance in the $90-$92 neighborhood -- where BABA landed after a late-January bear gap.

  • CRM is taking off ahead of the bell, after the company raised its full-year revenue forecast and reported better-than-expected quarterly profits. The news has been met with a bevy of positive analyst attention for the consummate takeover candidate. No fewer than 13 brokerage firms have upped their assessments of Salesforce.com, inc., with Deutsche Bank setting the highest bar, at $90 -- a 28.3% premium to yesterday's close at $70.16. In addition, Argus upgraded CRM to "buy" from "hold." This is par for the course, as 25 analysts rate the equity a "buy" or better, compared to four "holds" and just one "sell." On the charts, it's been a good year for the shares, which have advanced 18.3% year-to-date atop support from their 40-day trendline. As alluded to, CRM is poised to gap higher out of the gate, up 4.1% in pre-market activity.

  • WSM is pointed 3.7% higher ahead of the open, after an earnings beat was greeted with applause on the Street. Specifically, no fewer than five brokerage firms boosted their price targets, with UBS leading the pack with an upward revision to $84 from $78. Likely looking forward to Williams-Sonoma, Inc.'s potential upside gap are call buyers. During the past four weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open more than two calls for every put. Technically speaking, 2015 has been a ho-hum year for WSM, which has added just under 3% to rest at $77.89.
Published on May 21, 2015 at 9:30 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Heading into a jam-packed session on the economic front, U.S. stocks are pointed lower. Among the equities in focus are electronics retailer Best Buy Co Inc (NYSE:BBY), biotech concern bluebird bio Inc (NASDAQ:BLUE)​, and healthcare services provider Omnicare, Inc. (NYSE:OCR).

  • BBY is getting a lift this morning from impressive first-quarter numbers. Shares of the retailer are 8% higher in pre-market trading after closing yesterday at $33.78. While 2015 has been tough on Best Buy Co Inc, the stock is a longer-term success story, adding over 33% in the past 12 months. In recent months, though, options traders have grown pessimistic. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.12 is only 8 percentage points from an annual bearish peak.

  • BLUE is set to do even better out of the gate, as the stock is up 11.6% ahead of the open -- and on pace for a record high -- after the company announced a patient with sickle cell disease was treated successfully using its gene therapy. It's not like bluebird bio Inc needed to boost shareholder morale. The equity closed yesterday at $165.71, compared to a closing price of just $23.30 this time last year. This dominant technical performance is likely part of the reason all nine brokerage firms tracking BLUE say it's a "strong buy." Also, its consensus 12-month price target is $201.13 -- a 21.4% premium to current levels, and territory never before seen.

  • OCR is sporting a 1.3% lead in electronic trading, due to news the company will be purchased by CVS Health Corp (NYSE:CVS) for nearly $13 billion. Omnicare, Inc. has been strong on the charts, outdoing the S&P 500 Index (SPX) by almost 20 percentage points over the past three months. In fact, the security touched an all-time high of $95.09 yesterday, before settling at $94.63. Put buying has been more popular than normal, nonetheless. OCR's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.17 is higher than 82% of readings from the past year.
Published on May 21, 2015 at 9:49 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Downgrades

Analysts are weighing in on data storage specialist NetApp Inc. (NASDAQ:NTAP), industrial issue Rexnord Corp (NYSE:RXN), and alternative energy name JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO). Here's a quick roundup of today's bearish brokerage notes on NTAP, RXN, and JASO.

  • NTAP is down 11.4% -- and hit a two-year low of $31.01 in early trading -- after the firm reported a fiscal fourth-quarter earnings miss, offered up a dreary current-quarter outlook, and announced a round of layoffs. Adding to the bearish backdrop is a round of downbeat analyst notes. J.P. Morgan Securities, for example, downgraded the stock to "underweight" from "neutral" and lowered its price target by $6 to $29, explaining the firm is not adopting its cloud protection system at a quick enough speed. Elsewhere, Cantor reduced its rating to "hold" from "buy" and slashed its price target by $8 to $35, saying NetApp Inc. appears "vulnerable to customer defections and market share losses in [a] very competitive storage market." Year-to-date, the shares have shed roughly 24% to linger near $31.30. In the options pits, put buyers were loading up their positions ahead of earnings, per NTAP's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.02, which ranks in the 88th annual percentile.
  • RXN tagged an annual low of $24.09 out of the gate -- and was last seen 8.3% lower at $24.87 -- after its disappointing turn in the earnings confessional. What's more, Wedbush downgraded the security to "neutral" from "outperform" and cut its price target to $27 from $32, while Baird also lowered its price target to $27 (from $29). For most of the year, RXN has been bouncing between $24.50 and $27.50 -- the latter of which coincides with the stock's 320-day moving average -- and it appears short sellers have been anticipating more technical turbulence. Short interest jumped 12.3% in the most recent reporting period, and now accounts for 3.3 million shares. It would take more than a week to cover these shorted shares, at Rexnord Corp's average daily pace of trading.
  • Roth Capital reduced JASO to "neutral" from "buy," bucking the bullish bias seen among the brokerage bunch. In fact, ahead of today's downgrade, each of the analysts covering the shares maintained a "buy" or better rating, and the average 12-month price target of $12.40 stands at a 38% premium to the stock's current perch at $8.96 -- and in territory not charted since March 2014. Technically speaking, the stock has fared better than sector peer Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), up 8% year-to-date. Plus, despite taking a sharp dive yesterday following an unexpectedly steep sell-off in Chinese solar stock Hanergy Thin Film Power Group Ltd, JA Solar Holdings Co., Ltd. found a firm foothold atop its 160-day moving average.
Published on May 21, 2015 at 12:14 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in today on software firm Open Text Corporation (USA) (NASDAQ:OTEX), telecom titan T-Mobile US Inc (NYSE:TMUS), and blue chip Pfizer Inc. (NYSE:PFE). Here's a quick roundup of today's brokerage notes on OTEX, TMUS, and PFE.

  • OTEX is fresh off an annual low of $42.29, as the company's strategic update last night -- which included lackluster guidance and a planned 5% workforce reduction -- failed to impress. Brokerage firms panned the presentation, with no fewer than 10 cutting their price targets on Open Text Corporation. At last check, the shares were perched nearly 12% lower at $43.19. Should this technical trajectory persist, additional price-target cuts could come down the pike. OTEX's average 12-month price target is $72.82 -- a 69% premium to current trading levels, and in all-time-high territory.

  • On the flip side, TMUS hit a multi-year high of $36.81 earlier, after the CEO of parent company Deutsche Telekom vowed to consider partners to improve the subsidiary's performance, and also added that it is in a better condition now than two years ago. Subsequently, Bernstein upped its price target on T-Mobile US Inc to $36 from $32 -- still a discount to the stock's current price of $36.36. Put buyers may be wringing their hands amid the equity's 3.3% rally. TMUS sports a 10-day put/call volume ratio of 7.31 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Not only does this ratio indicate more than seven puts have been bought to open for every call during the last two weeks, it likewise stands in the 93rd percentile of its annual range.

  • PFE is up 0.3% at $34.41, after being named a "top global pick" by Jefferies. The shares have performed well in 2015, cruising atop their 20-week moving average for a 10.5% year-to-date gain. It also appears Pfizer Inc.'s 10- and 20-day moving averages are on the verge of a bullish cross, suggesting potential upside ahead. Options traders at the ISE, CBOE, and PHLX have been betting bullishly on PFE of late. The stock's 10-day call/put volume ratio checks in at 5.25 -- higher than four-fifths of comparable readings from the past 12 months.
Published on May 21, 2015 at 3:21 PM
Updated on Mar 19, 2021 at 7:15 AM
  • The Week Ahead
Even with the holiday-shortened week, traders will have plenty of economic data to take in, starting with durable goods orders on Tuesday and ending with the latest first-quarter gross domestic product (GDP) estimate on Friday. Although earnings season is winding down, luxury retailers Michael Kors (KORS) and Tiffany & Co. (TIF) will take the stand, along with Costco Wholesale (COST), Abercrombie & Fitch (ANF) and GameStop (GME), among others. 

Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

Monday, May 25
U.S. markets will be closed in observance of Memorial Day.
 
Tuesday, May 26
Tuesday's docket includes durable goods orders, the S&P/Case-Shiller home price index, new home sales, the Conference Board's consumer confidence index, and the Dallas Fed manufacturing survey. Autozone (AZO), TiVo (TIVO), and Workday (WDAY) will tell all in the earnings confessional.
 
Wednesday, May 27
There are no notable economic reports scheduled for Wednesday. Stepping up to the earnings mic are Chico's (CHS), COST, DSW (DSW), KORS, Palo Alto Networks (PANW), TIF, Tilly's (TLYS), and Toll Brothers (TOL).
 
Thursday, May 28
Weekly jobless claims, pending home sales, and the holiday-delayed crude inventories report are due. Companies slated to report earnings include ANF, Avago Technologies (AVGO), Deckers Outdoor (DECK), GME, JinkoSolar (JKS), OmniVision Technologies (OVTI), Pacific Sunwear (PSUN), Seadrill (SDRL), Splunk (SPLK), and Ulta Salon, Cosmetics & Fragrance (ULTA).
 
Friday, May 29
The week closes out with the preliminary first-quarter GDP, the Chicago purchasing managers index (PMI), and the Thomson Reuters/University of Michigan consumer sentiment index. The earnings calendar is relatively bare. 
 
Published on May 22, 2015 at 9:06 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Upgrades

Analysts are weighing in today on TurboTax parent Intuit Inc. (NASDAQ:INTU), shoe seller Foot Locker, Inc. (NYSE:FL), and discount retailer Ross Stores, Inc. (NASDAQ:ROST). Here's a quick roundup of today's bullish brokerage notes on INTU, FL, and ROST.

  • INTU is getting some positive attention this morning, following last night's earnings beat and hiked sales guidance. Specifically, no fewer than six brokerage firms raised their price targets on the stock, with both Jefferies and UBS setting the bar at $120. Additional price-target hikes could be in line, considering Intuit Inc.'s average 12-month price target of $98.38 sits at a discount to last night's close at $104.16. Potential upgrades are also possible, as eight analysts consider INTU a "hold" or worse, versus five "buy" or better recommendations. Technically speaking, the shares hit a record high of $104.74 yesterday, and could take out that milestone this morning -- perched 0.8% higher ahead of the open.

  • FL is also feeling the love after reporting better-than-expected first-quarter results and a nearly 8% rise in same-store sales. Deutsche Bank upped its price target on the stock to $71 from $69, and reiterated its "buy" opinion. In addition, the firm said unwarranted concerns about a slowdown in sneaker sales offer an opportunity to own FL at a discount, and predicted double-digit long-term earnings growth for the retailer. On the charts, Foot Locker, Inc. has been a long-term outperformer, rallying nearly 14% year-to-date to rest at $64, and touching a record high of $64.38 yesterday -- a mark that could get topped this morning, with the shares pointed up 2.8% in electronic trading. Nevertheless, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have expressed reservations. FL's 10-day put/call volume ratio across those exchanges is 2.52, which ranks in the 95th percentile of its annual range.

  • ROST is getting showered with positive attention, too, following a successful turn in the earnings confessional and an upwardly revised full-year outlook. Specifically, UBS and Jefferies raised their respective price targets to $103 and $102 -- though both are a hair's breadth from Thursday's close at $101.55. It's been a sensational year for Ross Stores, Inc., which has soared 49% year-over-year -- despite spending most of the past three months churning in the $100-$108 range. Should the stock break out on the aforementioned developments, additional bullish brokerage notes are a possibility. Twelve of 19 analysts still consider ROST a tepid "hold," and its average 12-month price target of $106.50 stands at a slim 5% premium to current trading levels.
Published on May 22, 2015 at 9:25 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

U.S. stocks are signaling a strong open, ahead of Fed Chair Janet Yellen's afternoon speech. Among the equities in focus are smartphone maker BlackBerry Ltd (NASDAQ:BBRY), farming equipment firm Deere & Company (NYSE:DE), and online travel concern eLong, Inc. (ADR) (NASDAQ:LONG)​. 

  • BBRY is moving higher on news the company will buy back up to 12 million shares. In pre-market action, the stock is 3% higher, after finishing yesterday at $10.27. BlackBerry Ltd could feel some tailwinds, too, if analysts and/or option traders change their skeptical tune. For instance, 16 of 19 brokerage firms say BBRY is a "hold" or worse. Also, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 0.55 represents an annual bearish peak. Should sentiment shift in a more positive direction, BBRY could add to its 41% year-over-year lead.

  • A fiscal second-quarter earnings beat has DE 3.4% higher ahead of the open. Like BBRY, Deere & Company could see an added boost if it can sustain today's potential rally, and answer the skeptics. Twelve of 15 analysts say the stock is only a "hold" or worse. What's even more eye-popping, though, is short interest on DE. Almost 10% of the security's float is sold short, and would take close to three weeks to repurchase, at average daily volumes. There's certainly potential for a short-squeeze situation. The shares settled at $89.46 yesterday. 

  • LONG is booming in electronic trading, boasting a 33.7% lead, after Expedia Inc (NASDAQ:EXPE) announced it sold its stake in the company to Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) and several other parties. This will just add to eLong, Inc.'s impressive 15.1% year-to-date lead, finishing yesterday at $20.65. In fact, these pre-market gains have LONG poised to hit levels not seen since May 2011. There's plenty of sideline cash to fuel additional upside, too, as current short interest levels would take one week to buy back, at the stock's typical daily trading rate.
Published on May 22, 2015 at 9:39 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Downgrades

Analysts are weighing in on computer issue Hewlett-Packard Company (NYSE:HPQ), semiconductor concern Marvell Technology Group Ltd. (NASDAQ:MRVL), and biopharmaceutical firm Otonomy Inc (NASDAQ:OTIC). Here's a quick roundup of today's bearish brokerage notes on HPQ, MRVL, and OTIC.

  • HPQ received price-target cuts from Cantor (to $33), RBC (to $37), and BMO (to $38), after the firm posted mixed results for its fiscal second quarter, and said it will endure around $400 million in costs when it splits into two separate companies in November. These aren't the first headlines HPQ has made this week, with yesterday's M&A news providing Hewlett-Packard Company shares with a quick shot in the arm. Longer term, though, the stock has been a laggard, shedding more than 14% of its value year-to-date. Another round of downwardly revised price targets could be in the pipeline, should HPQ continue to struggle. The security's average 12-month price target of $40.40 represents expected upside of 17.4% to HPQ's present price of $34.42.
  • A number of brokerage firms chimed in on MRVL, following the company's first-quarter revenue miss. Additionally, Marvell Technology Group Ltd. offered up a lower-than-expected current-quarter forecast and announced the retirement of Chief Financial Officer Mike Rashkin. Included in the bunch was Credit Suisse, which cut its price target to $13 from $16, and Jefferies, which reduced its target price to $14 from $15. Raymond James, meanwhile, boosted its price target to $16 from $15 -- a 14.7% premium to the stock's current perch at $13.95. Against this backdrop, MRVL is down 2.9% at the open, which could prompt some option bulls to hit the bricks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MRVL's 50-day call/put volume ratio of 11.52 sits in the 94th annual percentile. In other words, calls have been bought to open over puts with more rapidity just 6% of the time within the past year.
  • OTIC plunged 18.4% out of the gate to $25.35, after the company's experimental ear drug, OTO-104, failed to meet the main goal of its mid-stage trial. Adding to the bearish bias is a downgrade to "neutral" from "overweight" and price-target cut to $30 from $42 at J.P. Morgan Securities. Bernstein also weighed in on Otonomy Inc, reducing its target price to $30 from $34. Heading into today's session, the stock had already lost over a quarter of its value since topping out at a record high of $41.99 in mid-March, and short sellers have likely been cheering. At present, more than 10% of the equity's float is sold short.
 

 

Published on May 22, 2015 at 12:02 PM
Updated on Mar 19, 2021 at 7:15 AM

Analysts are weighing in today on beauty products peddler Jumei International Holding Ltd (ADR) (NYSE:JMEI), medical device manufacturer Rewalk Robotics Ltd (NASDAQ:RWLK), and apparel retailer Aeropostale Inc (NYSE:ARO). Here's a quick roundup of today's brokerage notes on JMEI, RWLK, and ARO.

  • JMEI is getting crushed around midday, as traders disregard the company's first-quarter earnings beat and a pair of bullish brokerage notes. Specifically, Macquarie upgraded the stock to "outperform" from "neutral," and Piper Jaffray lifted its price target to $25 from $16. At last check, Jumei International Holding Ltd was 6.4% lower at $26.25 -- but has still roughly doubled on a year-to-date basis. This is bad news for a recent crop of call buyers. During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JMEI has amassed a call/put volume ratio of 9.19 -- higher than 78% of comparable readings from the past year.

  • On the other hand, RWLK is erupting on the heels of an upbeat note from Canaccord Genuity -- which raised its assessment of the stock to "buy" from "hold," and its price target to $17 from $11. However, despite the shares 16.6% surge to trade at $12.90, they remain 31.7% lower year-to-date -- and earlier ran up against resistance at their 80-day moving average, currently located at $13.99. Short sellers are likely feeling the heat, as nearly 13% of Rewalk Robotics Ltd's float is sold short -- which would take more than a week to repurchase, at the equity's typical daily trading levels.

  • Finally, ARO is taking it on the chin, down 13.2% at $2.25 -- bringing the shares into negative year-to-date territory. The selling pressure comes courtesy of weaker-than-expected first-quarter results and disappointing current-quarter guidance, as well as a subsequent round of bearish analyst attention. Specifically, no fewer than seven brokerage firms reduced their price targets on Aeropostale Inc, with Topeka Capital and UBS trimming their targets to $2.25. Meanwhile, SunTrust Robinson cut its price target to $2.50, saying it continues "to be concerned that the brand is substantially less relevant." Traders have been betting bearishly on the equity for some time now. ARO's 50-day ISE/CBOE/PHLX put/call volume ratio stands at an annual high of 0.50.
Published on May 26, 2015 at 9:18 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Upgrades

Analysts are weighing in today on tech wizard Apple Inc. (NASDAQ:AAPL), semiconductor firm Marvell Technology Group Ltd. (NASDAQ:MRVL), and party supply retailer Party City Holdco Inc (NYSE:PRTY). Here's a quick roundup of today's bullish brokerage notes on AAPL, MRVL, and PRTY.

  • AAPL is fractionally higher in pre-market action -- preparing to add to its 20% year-to-date lead, as the shares settled at $132.54 on Friday. Helping the stock is a price-target increase at Cowen and Company to $140 from $135. Elsewhere, the company announced this morning that longtime designer Jony Ive has been promoted to the newly created position of chief design officer. Taking a look at the recent option trading activity on Apple Inc. reveals a somewhat bearish trend. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has amassed a put/call volume ratio of 0.55, which is only 4 percentage points from an annual high.

  • Last week, analysts waxed pessimistic on MRVL, following the company's first-quarter earnings report. This morning, however, the security is up 1.6% ahead of the bell -- thanks to Morgan Stanley, which raised its outlook to "overweight" from "equal rate," and moved its price target up to $17.50 from $15. Sentiment is mixed among the brokerage bunch. Nine firms say Marvell Technology Group Ltd. is a "buy" or better, while 11 have handed out "hold" ratings, and four others "sell" or worse opinions. On the charts, the equity has underperformed the S&P 500 Index (SPX) by over 19 percentage points in the past three months, finishing at $13.14 on Friday. Currently, MRVL's 14-day Relative Strength Index (RSI) sits in oversold territory, at 28.

  • Several brokerage firms initiated coverage on Wall Street newcomer PRTY this morning. Notably, J.P. Morgan Securities started the shares with an "overweight" rating, and a price target of $26 -- a 19.3% premium to Friday's close at $21.80. Credit Suisse set its price target at the same level, while Deutsche Bank handed out a $25 price target, and called the shares a "buy." As a result, the stock is up 1.9% in electronic trading. Through Party City Holdco Inc's first few days of option trading, it's seen 280 calls bought to open at the ISE, CBOE, and PHLX, compared to just 13 puts. 
Published on May 26, 2015 at 9:23 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity

Analysts are weighing in today on alternative energy issue First Solar, Inc. (NASDAQ:FSLR), as well as coal concerns Alpha Natural Resources, Inc. (NYSE:ANR) and Arch Coal Inc (NYSE:ACI). Here's a quick roundup of today's bearish brokerage notes on FSLR, ANR, and ACI. 

  • RBC downgraded FSLR to "underperform" from "sector perform," and slashed its price target by $20 to $34, citing the company's "flattish" revenue growth forecast for this year and next. As such, the shares are pointed 4% lower ahead of the bell. Longer term, however, First Solar, Inc. is sitting on a 23.5% year-to-date lead at $55.07. Options traders have been skeptical toward the stock in recent weeks. FSLR's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.45 sits at the top of its annual range. Should the shares resume their longer-term uptrend, a capitulation among these doubters could result in tailwinds.

  • ANR has struggled mightily on the charts, shedding 61% year-to-date to rest at $0.65. That trend is continuing this morning, with the equity dropping 7.7% ahead of the open, after being started with an "underperform" assessment and $0.50 price target at Credit Suisse. In fact, Alpha Natural Resources, Inc. is on track to open at a new record low. Meanwhile, short sellers have been piling on. Roughly one-third of ANR's float is sold short, which would take close to 14 sessions to repurchase, at the stock's average daily trading levels.

  • Sector peer ACI is also struggling in electronic trading, after Credit Suisse slapped it with a new "underperform" rating and $0.50 price target. The bearish note has sent the shares 9.4% south of breakeven ahead of the open, putting them on pace for an all-time low. Longer term, Arch Coal Inc has surrendered nearly 63% in 2015 to sit at $0.66. Short sellers have taken note, too. Close to 23% of ACI's float is dedicated to short interest, and at its average trading volume, it would take more than three weeks to repurchase all these bearish bets.

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