Earnings Season Highlights

Refresh your browser for the latest updates!
A collection of noteworthy post-earnings reactions
Published on Aug 4, 2015 at 9:29 AM
Updated on Jul 2, 2020 at 2:30 PM
  • Analyst Downgrades
Analysts are weighing in today on insurance issue Allstate Corp (NYSE:ALL), blue chip Chevron Corporation (NYSE:CVX), and semiconductor firm Microchip Technology Inc. (NASDAQ:MCHP). Here's a quick roundup of today's bearish brokerage notes on ALL, CVX, and MCHP.

 

  • ALL reported disappointing quarterly earnings last night, prompting RBC to downgrade its rating to "sector perform" from "outperform," and Goldman Sachs to follow suit with a reduction to "neutral" from "conviction buy." As such, the shares are poised to drop 8% at the open, pushing them further into the red. As of Monday's close at $69.38, Allstate Corp was down 1.2% in 2015. Future downgrades could further pressure the stock, as more than half of covering analysts have doled out "buy" or better endorsements. Price-target cuts are a distinct possibility, as well, considering ALL's average 12-month price target of $73.42 sits in never-before-seen territory.

  • CVX has been following crude lower, and leading the Dow south in recent sessions. Yesterday, in fact, the energy stock hit a four-year low of $85.32, just a few days after the company reported its worst quarterly profit in more than a decade. This bearish momentum could continue today, as Goldman Sachs cut its price target on Chevron Corporation to $86 from $91. Additional price-target reductions could come down the pike, too. Currently, CVX's average 12-month price target is $106.22, or 24% above last night's close at $85.60.

  • MCHP reported lower-than-expected earnings last night, prompting a number of brokerage firms to weigh in. While Credit Suisse reinstated coverage with an "outperform" rating and $50 price target, five other firms cut their price targets -- with Morgan Stanley setting the lowest bar, at $47. Ahead of the bell, Microchip Technology Inc. is perched 1.8% below last night's close at $42.78, threatening to add to its year-to-date deficit of more than 5%. Short sellers are counting on the security to maintain its negative trajectory. Roughly one-tenth of MCHP's float is sold short, representing about two weeks' worth of trading, at typical daily trading levels.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Aug 3, 2015 at 9:26 AM
Updated on Jul 2, 2020 at 2:30 PM
  • Analyst Downgrades

Analysts are weighing in today on handbag designer Coach Inc (NYSE:COH), blue chip Exxon Mobil Corporation (NYSE:XOM), and drugmaker MannKind Corporation (NASDAQ:MNKD). Here's a quick roundup of today's bearish brokerage notes on COH, XOM, and MNKD.

  • COH, which will report earnings tomorrow morning, saw its rating reduced to "neutral" from "overweight" at J.P. Morgan Securities, which also lowered its price target to $30 from $47. As such, the shares are off 1.8% ahead of the bell. It's been a woeful 2015 for Coach Inc, which has slid nearly 17% to trade at $31.20, and last week skimmed a five-year low of $30.13. Option traders are rolling the dice on additional losses, too, based on data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, COH's 50-day put/call volume ratio of 0.94 is just 4 percentage points from a 52-week high.

  • XOM has had a rough go of it recently, in no small part due to lackluster earnings -- as well as crude oil's prolonged swoon. On Friday, the shares settled at $79.21 -- just above their three-year low of $78.93, touched in intraday trading. Amid these technical troubles, Exxon Mobil Corporation has captured bearish attention across the Street. Eleven of 14 analysts currently rate the stock a "hold" or worse. Just this morning, in fact, RBC and Credit Suisse trimmed their respective price targets to $96 and $83. Elsewhere, XOM's 50-day ISE/CBOE/PHLX put/call volume ratio of 2.12 registers above 90% of comparable readings taken in the last year.

  • RBC also weighed in on MNKD, downwardly revising its price target to $9 from $10. As a result, the stock is staring at a pre-market deficit of 1.6%. Already this year, MannKind Corporation has slid nearly 18% to land at $4.29, and since early June, has been stair-stepping its way south. This negative trend hasn't been lost on short sellers. A lofty 42.9% of MNKD's float is sold short, representing more than five weeks' worth of trading, at typical daily volumes. And, as we've noted recently, options traders have grown quite bearish.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 31, 2015 at 9:54 AM
Updated on Jul 2, 2020 at 2:30 PM
  • Analyst Downgrades

Analysts are weighing in today on Internet real estate resource Zillow Group Inc (NASDAQ:Z), professional networking site LinkedIn Corp (NYSE:LNKD), and touchscreen designer Synaptics, Incorporated (NASDAQ:SYNA). Here's a quick roundup of today's bearish brokerage notes on Z, LNKD, and SYNA.

  • Z, which will step up to the earnings plate next Tuesday evening, was hit with a downgrade to "underperform" from "market perform" at Cowen and Company, which also slashed its price target to $60 from $90. However, the stock is up 1.3% this morning at $84.20, paring its year-to-date deficit to 20.4%. Not surprisingly, sentiment on the Street is bearish toward Zillow Group Inc. Over 70% of covering analysts consider the underperformer a "hold" or worse, and 35% of its float is sold short -- representing almost eight days of trading, at Z's typical volumes.

  • Despite posting better-than-anticipated second-quarter results, LNKD has plunged 9.9% this morning at $204.76, as investors worry about the company's widening quarterly losses and lackluster full-year sales forecast. Since touching a late-February record peak of $276.18, the shares have retreated nearly 26%. Contributing to today's swoon is a round of bearish analyst notes. Evercore ISI downgraded LinkedIn Corp's rating to "hold" and lowered its price target to $220, while explaining the company's "more conservative outlook" is the result of "limited visibility on its marketing solutions line, where it continues to make a transition away from high-priced premium display to feed-based and more performance-based ads." Similarly, Piper Jaffray trimmed its price target to $240. However, Jefferies, Needham, Cantor, and Raymond James each raised their price targets. Elsewhere, short-term option traders have been put-skewed toward LNKD. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.07 ranks in the 88th percentile of its annual range.

  • SYNA is getting destroyed, after the company posted a disappointing fiscal fourth-quarter profit, offered up an uninspiring full-year revenue forecast, and received a subsequent round of bearish brokerage notes. Specifically, seven analysts cut their price targets on the stock, the most drastic of which came from Dougherty & Company -- which slashed its target to $78 from $90. At last check, Synaptics, Incorporated has dropped 6.8% at $73.89, and since hitting a mid-June record high of $102.50, the security's loss is 28%. Option traders see more downside on the horizon, too. SYNA's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.98 ranks in the 71st annual percentile.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 30, 2015 at 9:38 AM
Updated on Jul 2, 2020 at 2:29 PM
  • Analyst Downgrades

Analysts are weighing in today on organic grocer Whole Foods Market, Inc. (NASDAQ:WFM), business review site Yelp Inc (NYSE:YELP), and tech issue Qorvo Inc (NASDAQ:QRVO). Here's a quick roundup of today's bearish brokerage notes on WFM, YELP, and QRVO.

  • WFM plunged to a three-year low of $35.99 out of the gate, and was last seen down 10.7% at $36.44, after the company's disappointing turn on the earnings stage. Adding insult to injury, no fewer than 11 analysts issued bearish notes on the stock earlier. For example, Canaccord Genuity downgraded its opinion on Whole Foods Market, Inc. to "hold" from "buy," and cut its price target to $38, while Sterne Agee CRT lowered its rating to "neutral" from "buy," and slashed its price target to $37. Though shareholders are feeling the heat, short sellers are likely dancing in the streets. More than 20 million WFM shares are sold short, representing six days of trading, at typical volumes. Along similar lines, recent put buyers are probably happy with the stock's sell-off.

  • YELP got demolished yesterday, and touched a two-year low of $23.66, on the heels of a downwardly revised full-year outlook. Today, however, the shares are up 0.8% at $25.26, despite a downgrade to "neutral" at MKM Partners, and a price-target cut to $45 at FBN Securities. With the security's 14-day Relative Strength Index (RSI) settling last night at 15 -- deep in oversold territory -- a near-term bounce may have been in the cards. Nevertheless, Yelp Inc has surrendered more than half its value in 2015, yet traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 3.37 calls for every put over the last 50 sessions. The corresponding call/put volume ratio sits 1 percentage point from an annual high. A capitulation among these bullish holdouts could have bearish implications for the stock.

  • Despite reporting better-than-expected fiscal first-quarter results, QRVO is getting battered with negative attention due to a disappointing current-quarter revenue forecast. Specifically, no fewer than 11 analysts cut their price targets on the equity, with Barclays setting the lowest bar, at $65. Downgrades could also be forthcoming, considering Qorvo Inc has received 11 "buy" or better assessments, versus just a pair of "holds" and not a single "sell" recommendation. Out of the gate, QRVO has plunged 14.1% to trade at $60.56, wiping out its year-to-date gains.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 29, 2015 at 9:49 AM
Updated on Jul 2, 2020 at 2:28 PM
  • Analyst Downgrades

Analysts are weighing in today on business review site Yelp Inc (NYSE:YELP), cloud concern Akamai Technologies, Inc. (NASDAQ:AKAM), and coal company Peabody Energy Corporation (NYSE:BTU). Here's a quick roundup of today's bearish brokerage notes on YELP, AKAM, and BTU.

  • YELP has plunged 27.5% in early trading at $25.96 -- and hit a two-year low of $23.97 -- as the company's reduced full-year earnings outlook draws the ire of Wall Street. Specifically, Raymond James and Cowen and Company downgraded their ratings to "market perform" from "outperform," with the latter also slashing its price target to $25 from $55. In fact, 15 other brokerages lowered their price targets on Yelp Inc. This could be bad news for traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the last 10 weeks, YELP has accrued a call/put volume ratio of 3.44 -- higher than all but 1% of comparable readings from the previous year. An unwinding of this optimism could pressure the shares even lower.

  • second-quarter earnings miss and weaker-than-expected third-quarter forecast are weighing on AKAM. Adding insult to injury, Canaccord Genuity, Craig-Hallum, and D.A. Davidson each lowered their price targets. As such, the stock has opened at a 6.9% loss, trading at $68.59 -- below a recent level of support in the $69-$70 area. Over at the ISE, CBOE, and PHLX, traders have been betting bearishly on Akamai Technologies, Inc. The stock's 50-day put/call volume ratio of 0.53 rests near the top quartile of its 52-week range.

  • BTU has charted a steady path lower since April 2011, pressured in recent months by its descending 20-day moving average. The downtrend is continuing this morning, with the stock off 2.5% at $1.18 -- after touching an earnings-induced all-time low of $0.99 yesterday. Weighing on Peabody Energy Corporation are price-target cuts at BMO (to $1 from $2) and Deutsche Bank (to $0.90 from $1.30). Amid this long-term swoon, short sellers have been piling on. Over 39% of BTU's float is sold short. Elsewhere on the sentiment front, two-thirds of analysts rate the stock a "hold" or worse.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 28, 2015 at 9:40 AM
Updated on Jul 2, 2020 at 2:28 PM
  • Analyst Downgrades

Analysts are weighing in today on Beijing-based search engine Baidu Inc (ADR) (NASDAQ:BIDU), business review site Yelp Inc (NYSE:YELP), and oil-and-gas issue Chesapeake Energy Corporation (NYSE:CHK). Here's a quick roundup of today's bearish brokerage notes on BIDU, YELP, and CHK.

  • BIDU is smarting this morning, following an earnings miss, weak current-quarter guidance, and a resultant round of bearish analyst notes. Among the brokerages weighing in are Pacific Crest and Brean Capital -- which lowered their opinions to the equivalent of a "hold" from a "buy" -- and Piper Jaffray, which slashed its price target to $210 from $230. As such, Baidu Inc has plunged 13.5% at the open to trade at $171.25 -- a bigger-than-expected post-earnings move -- and skimmed a new annual low of $170.22. There's plenty more room for additional bearish attention, as 73% of analysts consider the stock a "strong buy," with not a single "sell" to be found. Similarly, BIDU's average 12-month price target of $242.96 represents a 42% premium to the current price.

  • YELP is down 2.5% in early trading at $32.92, ahead of tonight's earnings release. Expectations are low heading into the event, with short interest soaring 43.2% during the latest reporting period -- and now representing 17% of the equity's float. In addition, Yelp Inc's rating was downgraded to "hold" from "buy" at Deutsche Bank, which also slashed its price target to $33 from $56. Of course, the shares haven't given the Street many reasons to be confident. YELP has surrendered roughly 40% this year, and earlier touched a two-year low of $32.55.

  • Spiraling oil prices have crushed energy stocks, and CHK is no exception. Although the shares are 1.1% higher this morning at $8.48, they're down nearly 57% year-to-date, and hit a 12-year low of $8.11 yesterday. Earlier, Wunderlich weighed in on a number of energy names, including Chesapeake Energy Corporation -- reducing its price target to $13 from $24. Wunderlich isn't alone in its bearish assessment. Eighty-five percent of covering analysts have tagged CHK with a "hold" or worse opinion, while almost 30% of the stock's float is sold short -- representing nearly two weeks' worth of activity, at typical volumes.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 27, 2015 at 9:54 AM
Updated on Jul 2, 2020 at 2:28 PM
  • Analyst Downgrades

Analysts are weighing in today on food-ordering app GrubHub Inc (NYSE:GRUB), drugmaker Mylan NV (NASDAQ:MYL), and Greece-based transportation issue Diana Shipping Inc. (NYSE:DSX). Here's a quick roundup of today's bearish brokerage notes on GRUB, MYL, and DSX.

  • Cowen and Company lowered its opinion on GRUB to "market perform" from "outperform," and slashed its price target to $30 from $39. The negative note -- which comes just ahead of the company's second-quarter earnings report, due out tomorrow morning -- has the shares 10% lower at $30.40. In fact, since hitting a record high of $47.95 in late March, GrubHub Inc has surrendered 36.6%. This could set the stage for future downgrades and/or price-target cuts, as all 14 covering analysts consider the shares a "buy" or better. What's more, GRUB's consensus 12-month price target of $47.88 sits in territory not charted in nearly four months.On the flip side, options traders remain quite bearish toward the security.

  • MYL's buyout bid from Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has been withdrawn, as the latter agreed to purchase Allergan PLC (NYSE:AGN) instead. The news has leveled Mylan NV shares, down 14.2% at $56.60 -- nearly wiping out the equity's year-to-date lead. Adding insult to injury, Cowen and Company downgraded the stock to "market perform" from "underperform," and reduced its price target to $65 from $80. The bear gap is a welcome development for recent put buyers. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open puts over calls at an accelerated clip, per MYL's put/call volume ratio of 0.46, which ranks in the 72nd annual percentile.

  • DSX is down 3.2% out of the gate at $7.27, following a downgrade to "sell" from "hold" at Evercore ISI -- though the brokerage firm upped its price target to $6 from $5.50. Still, the shares remain 8.3% higher year-to-date. Short sellers foresee more downside ahead for Diana Shipping Inc., with short interest spiking 23.5% during the last two reporting periods. At present, 6% of the stock's float is sold short, which would take more than a week to repurchase, at DSX's typical daily trading clip. Looking ahead, the company will hit the earnings confessional on Friday morning.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 24, 2015 at 10:07 AM
Updated on Jul 2, 2020 at 2:27 PM
  • Analyst Downgrades

Analysts are weighing in on online travel company TripAdvisor Inc (NASDAQ:TRIP), auto pricing issue TrueCar Inc (NASDAQ:TRUE), and drugmaker Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS). Here's a quick roundup of today's bearish brokerage notes on TRIP, TRUE, and SNSS -- which have all earned a place on the short-sale restricted list.

  • TRIP is down 9% at the open to $84.95, but appears to be finding a foothold atop its 120-day moving average. Today's sell-off is a result of the firm's second-quarter earnings miss and a round of price-target cuts. Specifically, the stock saw its target price reduced at RBC (to $86), Cowen and Company (to $75), and Evercore ISI (to $83). Heading into today's trading, the security had tacked on 25% this year, yet sentiment is skewed toward the skeptical side. More than 14% of TripAdvisor Inc's float is sold short, and 77% of covering analysts maintain a "hold" or "sell" suggestion on the stock.

  • TRUE bottomed at an all-time low of $6.55 out of the gate, after the company issued a profit warning for the current quarter and slashed its full-year revenue forecast.  What's more, a number of brokerage firms lowered their outlooks on the equity. Included in the bunch were J.P. Morgan Securities, which cut its rating to "neutral" from "overweight" and its price target to $12 from $23 -- and Goldman Sachs, which removed TRUE from its "America's Buy" list, downgraded the stock to "neutral" from "buy," and reduced its target price by $9 to $8. Thanks to today's 39% decline to $6.52, the stock is now staring at a 71% year-to-date deficit. Option traders could start jumping ship, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TrueCar Inc's 10-day call/put volume ratio of 16.27 ranks in the 73rd annual percentile. Simply stated, calls have been bought to open over puts at an accelerated clip.

  • News that the Food and Drug Administration (FDA) will not support SNSS' marketing application for its experimental cancer drug, vosaroxin -- saying the company needs to provide more clinical evidence -- was met with a backlash from the brokerage bunch. Cowen and Company, for instance, lowered its outlook to "market perform" from "outperform," while Roth Capital cut its rating to "sell" from "buy" and its price target to $1 from $5.50. Against this backdrop, the stock is down 71.3% at $0.99 -- and fresh off a six-year low of $0.98 -- erasing all of its year-to-date gains. Short-term speculators, meanwhile, have been more put-heavy than usual, per Sunesis Pharmaceuticals, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 0.50, which ranks higher than 74% of all similar readings taken in the past year.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

Published on Jul 23, 2015 at 9:54 AM
Updated on Jul 2, 2020 at 2:27 PM
  • Analyst Downgrades

Analysts are weighing in on chipmakers QUALCOMM, Inc. (NASDAQ:QCOM) and Texas Instruments Incorporated (NASDAQ:TXN), as well as kidney disease specialist Keryx Biopharmaceuticals (NASDAQ:KERX). Here's a quick roundup of today's bearish brokerage notes on QCOM, TXN, and KERX.

  • It's been a rough ride for QCOM in 2015, down 16% at $62.40. To the delight of option traders, the equity is extending this negative price action today -- off 2.7% -- after the firm offered up a weak current-quarter forecast, and confirmed plans to explore cost-cutting measures. Also pressuring the shares is a bevy of price-target cuts, including ones from Susquehanna (to $60) and Topeka Capital (to $65). Should QUALCOMM, Inc. continue its downward trajectory, another round of bearish brokerage notes could be on the horizon. More than half of those following the shares currently maintain a "buy" or better rating, while the average 12-month price target of $74 stands at an 18.6% premium to QCOM's present price.

  • TXN also provided a lackluster third-quarter forecast, due to a "generally softer market," prompting a number of brokerage firms to downwardly revise their price targets. Included in the bunch were Baird and Deutsche Bank, which reduced their target prices to $49, and Morgan Stanley, which lowered its price target by $4 to $46. However, the stock is up 1.3% at the open to trade at $49.95 -- and pare its year-to-date deficit to 6.5%. In the options pits, short-term speculators have been more put-heavy than usual toward Texas Instruments Incorporated. Specifically, the equity's Schaeffer's put/call open interest ratio (SOIR) of 2.22 ranks in the 65th annual percentile.

  • KERX tumbled to a new annual low of $8.69 out of the gate -- and was last seen 3.9% lower at $9.17 -- after Cowen and Company cut its rating to "market perform" from "outperform." Heading into today's session, the stock had already shed about a third of its value in 2015, and short sellers have been gambling on even steeper losses. In fact, short interest surged 11.9% in the last two reporting periods, and now accounts for more than 40% of Keryx Biopharmaceuticals' available float.
Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!
Published on Jul 22, 2015 at 9:56 AM
Updated on Jul 2, 2020 at 2:27 PM
  • Analyst Downgrades

Analysts are weighing in on coal concern Peabody Energy Corporation (NYSE:BTU), identity theft issue Lifelock Inc (NYSE:LOCK), and search engine specialist Yahoo! Inc. (NASDAQ:YHOO). Here's a quick roundup of today's bearish brokerage notes on BTU, LOCK, and YHOO.

  • It's been a dismal run for BTU, shedding 92% of its value during the last 52 weeks -- and hitting a record low of $1.12 on Monday. In today's session, the stock is off 2.5% at $1.17, after J.P. Morgan Securities downgraded its outlook to "neutral" from "overweight," saying BTU is under "extreme pressure" from short sellers. In fact, short interest surged 35% in the past two reporting periods, and now accounts for almost two-fifths of Peabody Energy Corporation's available float. Next week, the firm is scheduled to report earnings the morning of Tuesday, July 28.

  • LOCK had a terrible day on Tuesday -- plunging 49%, after the Federal Trade Commission (FTC) levied stiff allegations against the company. The brokerage bunch was quick to offer its two cents, with no fewer than four firms chiming in on the stock. RBC, for example, downgraded LOCK to "sector perform" from "outperform," and slashed its price target by $9 to $11. Elsewhere, Wunderlich Securities cut its outlook to "hold" from "buy," and lowered its price target to $9.25 from $20. Despite these bearish brokerage notes, Lifelock Inc is up 9.5% at the open to trade at $8.92. Considering its 14-day Relative Strength Index (RSI) closed last night at 11 -- deep in oversold territory -- a near-term bounce may have been in the cards. Looking ahead, LOCK earnings are tentatively scheduled for next week.

  • YHOO is down 2.7% out of the gate to linger near $38.67, after the firm -- along with several of its peers -- issued disappointing earnings. What's more, a handful of analysts cut their price targets on the shares, including BMO (to $46) and Evercore ISI (to $47). Cantor and Pivotal Research, meanwhile, bucked the trend by boosting their respective price targets to $62 -- territory YHOO hasn't charted since August 2000 -- and $43. Today's post-earnings price action is likely being celebrated in the options pits. Yahoo! Inc.'s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.59 ranks in the 94th annual percentile. In other words, puts have been bought to open over calls at a near-annual-high clip.
A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox!
Published on Jul 21, 2015 at 10:18 AM
Updated on Jul 2, 2020 at 2:26 PM
  • Analyst Downgrades

Analysts are weighing in on electric car concern Tesla Motors Inc (NASDAQ:TSLA), tech titan International Business Machines Corp. (NYSE:IBM), and specialty food producer United Natural Foods, Inc. (NASDAQ:UNFI). Here's a quick roundup of today's bearish brokerage notes on TSLA, IBM, and UNFI.

  • UBS took a no-holds-barred approach to TSLA, cutting its outlook to "sell" from "neutral" and its price target to $210 from $220 -- territory not charted by the stock since late April. Specifically, the brokerage firm said the company's early energy storage orders are "misleading," and that the division will likely fall short of expectations. Technically speaking, TSLA has been a standout, up 22% year-to-date. In fact, the shares hit their highest point since their Sept. 4 record high of $291.42 yesterday, at $286.65, but were more recently seen lingering near $270.97. While option traders have been initiating long calls over puts at an accelerated clip, short sellers have been rolling the dice on a retreat. Short interest accounts for more than 24% of Tesla Motors Inc's available float, or 7.1 times the average daily trading volume.

  • IBM has plunged 4.9% in early trading to linger near $164.71, after the company reported a 13th straight decline in quarterly revenue. Meanwhile, although the stock received a round of post-earnings price-target hikes -- including one from RBC to $170 from $160 -- J.P. Morgan Securities lowered its target price to $173 from $177. Longer term, International Business Machines Corp. is down 14% year-over-year, with recent rally attempts curtailed by IBM's 320-day moving average. Option traders, it seems, have been betting on Big Blue to snap out of its slump. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.64 ranks higher than 94% of all similar readings taken in the past year.

  • UNFI plunged to a two-year low of $52.28 out of the gate -- and was last seen down 12.7% at $54.63, and on the short-sale restricted list. Prompting the day's sell-off is news the firm has terminated its contract with Albertsons Companies, Inc., as well as a subsequent round of bearish brokerage notes. Oppenheimer, for example, lowered its rating to "perform" from "outperform" and its price target to $60 from $70, while Canaccord Genuity cut its target price to $65 from $71. Today's negative price action is just more of the same for a stock that was down more than 19% this year heading into today's trading -- which has more than likely been pleasing short sellers. Short interest on United Natural Foods, Inc. surged 42.5% in the last two reporting periods, and now accounts for 12% of the equity's available float.
Published on Jul 20, 2015 at 9:57 AM
Updated on Jul 2, 2020 at 2:26 PM
  • Analyst Downgrades

Analysts are weighing in on real estate issue Zillow Group Inc (NASDAQ:Z), online review portal Yelp Inc (NYSE:YELP), and car concern General Motors Company (NYSE:GM). Here's a quick roundup of today's bearish brokerage notes on Z, YELP, and GM.

  • Just a few weeks ahead of a big executive shift -- and a tentatively scheduled earnings report -- Z saw its rating cut to "underweight" from "equal weight" at Barclays, which also slashed its price target on the shares to $70 from $90. Not only does this represent a 10% discount to the stock's current perch at $77.71, but it sits in territory not charted since July 2013. Longer term, the shares have struggled since topping out at an all-time high of $164.90 last July, shedding more than half their value -- and hitting a new annual low of $76.82 this morning. Short sellers, meanwhile, have been rolling the dice on additional losses. In fact, short interest on Zillow Group Inc rose 3.3% in the latest reporting period to 17.4 million shorted shares -- a record high.

  • Barclays also weighed in on YELP, lowering its outlook to "equal weight" from "overweight," and cutting its price target to $36 from $50. As such, the stock tumbled to a two-year low of $33.35 out of the gate, and was last seen off 3.7% at $33.67. Today's negative price action only echoes the equity's withstanding trajectory, with YELP down 38.5% year-to-date. While analysts have been downwardly revising their ratings in recent weeks, there's still plenty of room for more bearish brokerage notes -- which could translate into additional headwinds for Yelp Inc. Currently, 50% of covering analysts still maintain a "buy" or "strong buy" rating, while the average 12-month price target of $52.41 stands at a 56% premium to YELP's present perch.

  • J.P. Morgan Securities reduced its price target on GM to $44 from $46, sending the shares 0.3% lower at the open to $30.56. It's already been a rough ride for General Motors Company, which has shed 22% since hitting an annual high of $38.99 in mid-March. While analysts have begun re-evaluating their bullish ratings, short-term speculators have shown a distinct preference for calls over puts. In fact, GM's Schaeffer's put/call open interest ratio (SOIR) of 0.56 sits lower than 88% of all similar readings taken in the past 12 months. An unwinding of the hedges related to these call positions could pressure the shares in the near term. Looking ahead, GM will tell all in the earnings confessional later this week.

A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox!


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 

Partnercenter


MORE | MARKETstories


Cash In on the $3 Trillion Electric Car Revolution
This product could finally limit our dependence on mass foreign oil.
DocuSign Stock Soars After Optimistic Bull Note
Brokerage firm RBC hiked the electronic signature company's price target to $210 from $170
Economic Data Eases Coronavirus Tensions
All three indexes closed out their best quarter in decades
Cash In on the $3 Trillion Electric Car Revolution
This product could finally limit our dependence on mass foreign oil.