Analyst Update: Aruba Networks, Infoblox, Potbelly

Analysts adjusted their ratings on Aruba Networks, Inc. (ARUN), Infoblox Inc (BLOX), and Potbelly Corp (PBPB)

Feb 27, 2015 at 11:52 AM
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Analyst Update: Aruba Networks, Inc., Infoblox Inc., and Potbelly Corporation Subtitle: Analysts adjusted their ratings on Aruba Networks, Inc. (ARUN), Infoblox Inc (BLOX), and Potbelly Corp (PBPB) Description: Analysts adjusted their ratings on Aruba Networks, Inc. (NASDAQ:ARUN), Infoblox Inc (NYSE:BLOX), and Potbelly Corp (NASDAQ:PBPB) Keywords: Aruba Networks Inc, ARUN, Infoblox Inc, BLOX, Potbelly Corp, PBPB

Analysts are weighing in today on network solutions providers Aruba Networks, Inc. (NASDAQ:ARUN) and Infoblox Inc (NYSE:BLOX), as well as restaurant chain Potbelly Corp (NASDAQ:PBPB). Here's a quick look at today's brokerage notes on ARUN, BLOX, and PBPB.

  • ARUN has had a big week in the news, as the company released an impressive fiscal second-quarter earnings report last night, following earlier rumors that Hewlett-Packard Company (NYSE:HPQ) might buy the company out. In response, no fewer than 14 brokerage firms upped their price targets on the equity, boosting the shares to hit an annual high of $24.48 before falling to $24 for a 6.2% gain. Drilling down, the loftiest hikes came from Cowen and Company and Dougherty & Company, which raised their respective price targets to $34 and $29. Aruba Networks, Inc. has been skyrocketing on the charts lately, with the shares up 32.3% year-to-date. However, traders have been buying to open puts over calls, as ARUN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.60 sits in the 71st percentile of its annual range. What's more, short interest accounts for over 10% of the stock's available float, which would take more than four days to cover, at average daily trading volumes.

  • BLOX reported a fiscal second-quarter earnings beat last night, prompting no fewer than eight brokerage firms to raise their price targets on the equity. Specifically, the most ambitious targets came from Cowen and Company and JMP Securities, which upped their respective price targets to $30 and $29, with both firms keeping a "market outperform" rating. This morning, the shares of Infoblox Inc hit an annual high of $25 before settling at $23.55 for a 10.7% gain. Year-to-date, the equity is up about 16.5%. Despite BLOX's technical fortune, sentiment in the options pits is put-skewed, as its 50-day ISE/CBOE/PHLX put/call volume ratio of 0.18 sits in the 78th percentile of its annual range.

  • Last night, PBPB announced that Chief Financial Officer Charles Talbot is resigning from his position to take a job outside of the restaurant business. Reacting was Piper Jaffray, which cut its price target to $12 from $16 and downgraded its opinion to "underweight" from "overweight," sending the shares 7.4% lower this morning to hit $13.60. Looking back, Potbelly Corp has been struggling, down about 36.5% year-over-year. Surprisingly, calls are popular in the options pits, as PBPB's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.48 sits in the bullishly-skewed 78th percentile of its annual range. However, short interest accounts for almost 24% of the stock's available float, which would take nearly 22 trading days to cover, at average daily trading volumes. In other words, some of the call buyers may be short sellers picking up insurance against an upside move in PBPB.

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