Analyst Downgrades:, Netflix, Transocean

Analysts downwardly revised their ratings on Coupons.Com Inc (COUP), Netflix, Inc. (NFLX), and Transocean LTD (RIG)

Feb 10, 2015 at 9:21 AM
facebook twitter linkedin

Analysts are weighing in today on digital promotion platform Coupons.Com Inc (NYSE:COUP), streaming content provider Netflix, Inc. (NASDAQ:NFLX), and offshore driller Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bearish brokerage notes on COUP, NFLX, and RIG.

  • The brokerage bunch is pouncing on COUP, after the company reported disappointing fourth-quarter figures and forward guidance. Specifically, RBC and Craig Hallum each slashed their price targets to $13 (from $18 and $24, respectively), with the latter also downgrading the stock to "hold" from "buy." As a result, Coupons.Com Inc is staring at a 35% pre-market deficit -- which would add to its 18.3% year-to-date loss, as of last night's close at $14.51. Should this technical trend continue, additional bearish notes could be forthcoming. After all, each of the analysts tracking COUP has doled out a "strong buy" recommendation, while its average 12-month price target of $21.75 stands at a nearly 50% premium to Monday's closing price.

  • Despite debuting its service in Cuba yesterday, NFLX was hit with a price-target cut to $509 from $511 at J.P. Morgan Securities -- which nonetheless reiterated its "overweight" opinion. The shares have had a strong run since reporting impressive quarterly results in late January, bringing their 2015 advance to nearly 30%. Options traders see more upside ahead, as well. Netflix, Inc.'s 50-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 1.04 -- in the 80th percentile of its annual range. NFLX closed at $443.07 yesterday.

  • Finally, RIG is off 2.3% ahead of the open, following a downgrade to "underperform" from "neutral" at Credit Suisse, which expects the company to stack a number of rigs over the coming years. It's been a rough year for the stock, which has declined nearly 52% over the past 12 months to trade at $20.44. However, it should be noted that Transocean LTD has also rallied 41% since bottoming at a nearly 20-year low of $14.50 in mid-January, amid a rebound in crude oil. Short sellers remain unconvinced, though. During the past two reporting periods, short interest on RIG increased 20.8%, and now makes up 30.6% of its float -- which would take more than seven sessions to buy back, at typical daily trading levels. This mirrors the pessimism recently observed among the analyst crowd.



These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners