Analyst Downgrades: Cyberark Software Ltd, Nu Skin Enterprises, Inc., and Workday Inc

Analysts downwardly revised their ratings on CYBR, NUS, and WDAY

by Alex Eppstein

Published on Nov 25, 2014 at 9:33 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on cyber-security firm Cyberark Software Ltd (NASDAQ:CYBR), nutritional supplements marketer Nu Skin Enterprises, Inc. (NYSE:NUS), and HR specialist Workday Inc (NYSE:WDAY). Here's a quick roundup of today's bearish brokerage notes on CYBR, NUS, and WDAY.

  • CYBR got hit with a pair of bearish brokerage notes earlier. William Blair downgraded the stock to "market perform" from "outperform" -- which cited long-term growth concerns -- while Nomura reduced its rating to "neutral" from "buy." This, despite the shares advancing 88% since their late-September public debut to close last night at $47.01. Out of the gate, though, Cyberark Software Ltd has given back 4.8%. On the sentiment front, options traders have bought to open 5.91 calls for every put during the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). However, short interest on CYBR spiked 66.5% in the latest reporting period, suggesting some of these bullish options bets may have been at the hands of short sellers seeking an upside hedge.

  • NUS was initiated with a "neutral" rating at Citigroup, which is about par for the course. Of the six analysts covering the shares, two-thirds rate them the equivalent of a "hold" or "sell." Short sellers are also skeptical of Nu Skin Enterprises, Inc., as 11.3% of the stock's float is sold short -- which would take a week to buy back, at average daily trading volumes. On the charts, NUS has shed about 70% of its value in 2014 to rest at $41.43, and has underperformed the broader S&P 500 Index (SPX) by roughly 19 percentage points during the last month.

  • Finally, WDAY has plunged 6% out of the gate, following a poorly received third-quarter earnings report, and a round of bearish brokerage notes. Specifically, no fewer than seven brokerage firms reduced their price targets on Workday Inc, including Deutsche Bank, which lowered its target by 10% to $90, and reiterated its "hold" opinion. On the charts, the equity was up 11.2% year-to-date as of Monday's close at $92.49, but this morning has broken south of its month-long sideways pattern in the $90-$97 range, at $86.97. Should WDAY continue to plummet in the wake of today's negative analyst attention, there will be plenty of short sellers cheering. More than 9% of the stock's float is sold short, which would take almost seven sessions to cover, at WDAY's average daily trading rate.

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