Analyst Update: Aruba Networks, Intel, Transocean

Analysts adjusted their ratings on Aruba Networks, Inc. (ARUN), Intel Corporation (INTC), and Transocean LTD (RIG)

Feb 23, 2015 at 11:39 AM
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Analysts are weighing in today on tech concern Aruba Networks, Inc. (NASDAQ:ARUN), chipmaker Intel Corporation (NASDAQ:INTC), and offshore drilling issue Transocean LTD (NYSE:RIG). Here's a quick look at today's brokerage notes on ARUN, INTC, and RIG.

  • This morning, RBC cut its price target on ARUN to $21 from $24, prompting the shares to fall 0.8% this morning to hit $18.27. Aruba Networks, Inc. -- which will report fiscal second-quarter earnings on Thursday night -- has been struggling, with the shares down about 23.6% since hitting an annual high of $23.90 on Sept. 12. Accordingly, bearish betting is popular in the stock's options pits, as ARUN's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.79 sits in the 77th percentile of its annual range. After reporting earnings in November, the shares of ARUN plummeted 13.7% in the subsequent session.

  • Exane BNP Paribas initiated coverage on INTC today with an "outperform" rating and a $42 price target. Still, the shares are down over 1.6% to reach $33.85, tumbling along with the broader equities market. Looking back, Intel Corporation has been climbing steadily, with the shares up 37.4% over the last 12 months. However, sentiment in the options pits is pessimistic, per INTC's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.02, which stands just 10 percentage points away from its highest reading of the past year. What's more, just under half of covering analysts rate the stock a "hold" or worse, and a capitulation of bearish sentiment among traders and brokerage firms could create tailwinds.

  • The shares of RIG are down about 2.8% this morning to reach $16.54, after Susquehanna cut its price target on the equity to $12 from $15 while revising its rating to "negative" from "neutral." Year-to-date, Transocean LTD is down roughly 9.8%. Surprisingly, calls are popular in the options pits ahead of Wednesday night's fourth-quarter earnings release. Specifically, the security's 10-day ISE/CBOE/PHLX call/put volume ratio of 1.43 sits in the 71st percentile of its annual range. However, outside of the options pits, nearly one-third of RIG's available float is sold short, representing about 10 sessions' worth of pent-up buying demand, at average trading volumes.
 

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