Analyst Downgrades: FireEye Inc, Transocean LTD, and Vivint Solar Inc

Analysts downwardly revised their ratings on FEYE, RIG, and VSLR

by Alex Eppstein

Published on Nov 11, 2014 at 9:27 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on cybersecurity firm FireEye Inc (NASDAQ:FEYE), offshore drilling specialist Transocean LTD (NYSE:RIG), and Wall Street rookie Vivint Solar Inc (NYSE:VSLR). Here's a quick roundup of today's bearish brokerage notes on FEYE, RIG, and VSLR.

  • Macquarie initiated coverage on FEYE (and a pair of its sector peers) with a "neutral" rating -- less than a day after the firm was added to J.P. Morgan Securities' "Focus" list, and discovered a bug in Apple Inc.'s (NASDAQ:AAPL) iOS. On the charts, FireEye Inc has struggled in 2014, losing more than one-quarter of its value to sit at $32.39. This technical weakness hasn't been lost on short sellers. During the past two reporting periods, short interest on FEYE spiked 16.1%, and now makes up 18.1% of the stock's total float.

  • RIG -- which has tumbled roughly 41% year-to-date to rest at $29.28 -- saw its price target cut to $28 from $38 at UBS (which affirmed its "neutral" rating), and to $27 from $30 at Cowen (which reiterated its "market perform" opinion). Conversely, Evercore lifted its price target to $27 from $24, while maintaining its "sell" assessment. Taking a step back, sentiment toward Transocean LTD is pretty bearish everywhere one looks on the Street. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 3.31 rests just 2 percentage points from an annual high, while 24% of RIG's float is sold short -- which would take more than a week to buy back, at the stock's average daily volume.

  • Finally, VSLR posted a big earnings miss last night, prompting Barclays to trim its price target to $16 from $17, and Goldman Sachs to reduce its target to $20 from $22 -- though both maintained their respective "equal weight" and "buy" ratings. As such, the shares are set to open 11.3% lower, exacerbating the technical struggles already encountered by the Wall Street freshman. Since going public on Oct. 1, the stock has slipped roughly 13% to its Monday close at $14.74. Nevertheless, bullish betting has been prevalent in Vivint Solar Inc's options pits. Specifically, the security's 10-day ISE/CBOE/PHLX call/put volume ratio is 3.54, meaning more than three calls have been bought to open for every put during the past two weeks.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


3 Million to Lose Jobs – and Not Because of Coronavirus?
A terrifying new trend can make you a millionaire or destroy your financial future.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.