Analyst Downgrades: Biogen, Lululemon, and SINA

Analysts downwardly revised their ratings on BIIB, LULU, and SINA

Nov 14, 2014 at 9:40 AM
facebook X logo linkedin

Analysts are weighing in today on biotech firm Biogen Idec Inc (NASDAQ:BIIB), yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU), and Chinese media company SINA Corp (NASDAQ:SINA). Here's a quick roundup of today's bearish brokerage notes on BIIB, LULU, and SINA.

  • Citigroup removed BIIB from its "most preferred pharma" list, citing concerns about the company's multiple sclerosis treatment, as well as patent litigation. Technically speaking, however, the stock has shot 33.8% higher over the past 12 months, as of yesterday's close at $317.98. That said, Biogen Idec Inc may be in a position to benefit from an unwinding of pessimism at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The equity's 10-day put/call volume ratio across those exchanges is 1.29 -- just 18 percentage points from an annual high. In other words, traders have been buying to open BIIB puts over calls at a faster-than-usual pace recently.

  • LULU saw its rating cut to "underperform" from "neutral" at Sterne Agee, and has stumbled 1.2% out of the gate to $44.64. Longer term, the stock has struggled, shedding 24.4% of its value in 2014. Understandably, the Street has been skeptical of Lululemon Athletica inc., as 19 out of 26 covering analysts have given the shares a "hold" or worse rating. What's more, nearly 21% of LULU's float is sold short, which would take more than three weeks to buy back, at average daily trading volumes.

  • Finally, SINA's disappointing revenue forecast is overshadowing its third-quarter earnings beat this morning, and the stock is getting hammered with bearish brokerage notes. Specifically, no fewer than four analysts lowered their price targets on SINA Corp, while Stifel downgraded the shares to "hold" from "buy." This morning, the security is sitting 6% lower at $39.35, which brings its year-to-date deficit beyond 53%. Not surprisingly, traders at the ISE, CBOE, and PHLX have been eyeing a move lower in recent weeks, as SINA's 10-day put/call volume ratio of 0.43 rests above four-fifths of comparable readings taken in the last year.

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