Analyst Downgrades: SolarCity Corporation, Garmin Ltd., and EOG Resources, Inc.

Analysts downwardly revised their ratings on SolarCity Corp (SCTY), Garmin Ltd. (GRMN), and EOG Resources Inc (EOG)

by Josh Selway

Published on Feb 19, 2015 at 10:05 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on alternative energy concern SolarCity Corp (NASDAQ:SCTY), navigational device maker Garmin Ltd. (NASDAQ:GRMN), and commodity concern EOG Resources Inc (NYSE:EOG). Here's a quick roundup of today's bearish brokerage notes on SCTY, GRMN, and EOG.

  • SCTY fell 5.8% out of the gate to $53.77, as a fourth-quarter earnings miss brought on a price target cut from Baird. The brokerage firm reduced its price target by $7 to $76, but kept its "outperform" rating on the shares. Most analysts are still bullish on the stock, with six of seven covering brokerage firms calling it a "buy" or better. Elsewhere, however, option traders have priced in plenty of pessimism. SolarCity Corp's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio is 1.44, which ranks higher than 95% of all such readings from the past year. Echoing this sentiment is SCTY's Schaeffer's put/call open interest ratio (SOIR) of 1.38, an annual high.

  • GRMN dropped nearly 11% yesterday, after reporting worse-than-expected fourth-quarter numbers. Today, the equity is trying to find its footing, but is still off 0.8% in early trading to land at $50.28. The shares are struggling amid a round of bearish brokerage notes. For example, Citigroup and Credit Suisse each cut their price targets by $2, to $68 and $54, respectively, while D.A. Davidson and RBC cut their price targets by $5 to $55 and $62, respectively. Garmin Ltd. has underperformed the broader S&P 500 Index (SPX) by nearly 16 percentage points in the past three months, so it's no surprise to see it has attracted heavy short interest. Specifically, over 17% of GRMN's float is sold short, representing more than 16 times the stock's average daily volume.

  • EOG is off 4.6% at $90.96, due to fourth-quarter earnings numbers that were way below expectations. The drop puts the shares in negative territory on a year-to-date basis. In the past two weeks at the ISE, CBOE, and PHLX, speculators have been extremely bearish toward EOG Resources Inc. The stock's 10-day put/call volume ratio across those exchanges comes in at 3.06 -- an annual bearish peak. Although 73% of covering analysts call EOG a "buy" or better, Citigroup waxed pessimistic on the stock this morning, cutting its outlook to "neutral" from "buy," and lowering its price target to $96.

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