Analyst Update: Gilead Sciences, Hasbro, and Mattel

Analysts adjusted their ratings on GILD, HAS, and MAT

Josh Selway

Dec 19, 2014 at 2:46 PM

Analysts are weighing in today on drug issue Gilead Sciences, Inc. (NASDAQ:GILD), as well as toymakers Hasbro, Inc. (NASDAQ:HAS) and Mattel, Inc. (NASDAQ:MAT). Here's a quick look at today's brokerage notes on GILD, HAS, and MAT.

GILD is continuing its blistering run up the charts, gaining 2.4% today to trade at $108.08, after RBC waxed optimistic on its decision to develop and market one of ONO Pharmaceutical Co.'s cancer drugs. The stock has now added nearly 44% year-over-year, so it's not surprising to see speculators taking a bullish stance. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Gilead Sciences, Inc.'s 10-day call/put volume ratio of 3.53 ranks in its 81st annual percentile, showing a healthier-than-normal appetite for long calls over puts in the past two weeks. Also, of the 18 analysts covering GILD, 15 deem it a "buy" or better, with three "holds" and zero "sells."

HAS is off more than 6% today after BMO cut its price target on the equity to $55 from $57 and reaffirmed its "market perform" rating, citing concerns about holiday sales. Hasbro, Inc. was last seen at $54.58, now 0.8% below its year-to-date breakeven mark. The security is no stranger to pessimism, as 9.4% of its float is sold short, and would take over eight sessions to buy back, at its average daily trading volume. Sentiment in HAS' options pits is still slanted to the bullish side, though, as its 50-day ISE/CBOE/PHLX call/put volume ratio of 1.73 ranks in the 66th percentile of its annual range.

BMO also cut the price target of HAS rival MAT by $2 to $28, and similarly restated a "market perform" opinion. The security subsequently has dropped 5.6% to its current price of $29.44. The move to the downside is just more of the same for Mattel, Inc., which is now off over 38% in 2014. Bearish options traders have taken notice, picking up 24.19 MAT puts for every call in the past two weeks at the ISE, CBOE, and PHLX. This ratio sits only 2 percentage points from an annual bearish extreme. What's more, short interest has increased 50% since mid-June.

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