Analyst Downgrades: Facebook, InvenSense, Michael Kors

Analysts downwardly revised their ratings on FB, INVN, and KORS

Oct 29, 2014 at 9:28 AM
facebook X logo linkedin

Analysts are weighing in today on Mark Zuckerberg's Facebook Inc (NASDAQ:FB), integrated circuit maker InvenSense Inc (NYSE:INVN), and apparel designer Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's bearish brokerage notes on FB, INVN, and KORS.

  • FB was greeted this morning by a round of bearish brokerage notes, after warning of increased spending and slower revenue growth in 2015 -- and despite a third-quarter earnings beat. In fact, no fewer than a dozen analysts cut their price targets on the stock -- although Raymond James and Canaccord Genuity raised their respective targets to $84 and $88, while maintaining their "outperform" and "buy" opinions. Taking a step back, 29 out of 32 analysts following Facebook Inc have doled out a "buy" or "strong buy" endorsement, compared to three "holds" and not a single "sell" rating. At last check, the shares -- which are up nearly 48% in 2014 to trade at $80.77 -- are sitting roughly 6.5% lower in pre-market trading.

  • INVN is getting pummeled on and off the Street, following a fiscal second-quarter earnings miss. Specifically, six brokerage firms slashed their price targets on the shares, while Piper Jaffray and Pacific Crest also downgraded the stock to "neutral" and "sector perform," respectively. In fact, Piper Jaffray cut its price target by a steep $12 -- more than any of its peers -- to $17. As such, InvenSense Inc -- which closed yesterday 3.4% higher year-to-date at $21.48 -- looks poised to drop approximately 21% out of the gate. Elsewhere, options traders had been betting bearishly on the equity ahead of last night's earnings report. INVN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.68 ranks in the 92nd percentile of its annual range.

  • Finally, KORS saw its fair value docked by $18 to $87 at Janney, which also lowered its rating to "neutral" from "buy." This comes as little surprise, considering the stock is down 3.7% year-to-date to trade at $78.17. Nevertheless, traders at the ISE, CBOE, and PHLX have been buying to open calls over puts at a rapid-fire rate in recent weeks. Specifically, Michael Kors Holdings Ltd's 10-day call/put volume ratio across those exchanges checks in at 2.92 -- or just 2 percentage points from an annual high.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI