Analyst Downgrades: Vale SA, Wendy's, EMC Corp

Analysts downwardly revised their ratings on Vale SA (ADR) (VALE), Wendys Co (WEN), and EMC Corporation (EMC)

by Josh Selway

Published on Mar 11, 2015 at 9:47 AM
Updated on Jul 2, 2020 at 1:08 PM

Analysts are weighing in today on mining issue Vale SA (ADR) (NYSE:VALE), fast-food restaurant chain Wendys Co (NASDAQ:WEN), and IT service provider EMC Corporation (NYSE:EMC). Here's a quick roundup of today's bearish brokerage notes on VALE, WEN, and EMC.

  • Cowen and Company cut its price target on VALE to $5 from $8 this morning, while keeping its "market perform" rating. Technically speaking, the equity has struggled for a while now, dropping over 61% since its annual high of $15.59 in April. Speculators have been placing bearish bets in response to Vale SA's technical misfortunes. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.29 ranks just 12 percentage points from an annual peak. Analysts have displayed their doubts as well, with 69% of covering brokerage firms calling the security a "hold" or worse. VALE was last seen 1.3% lower at $6.06.

  • WEN is up 0.2% at $10.77, even after Credit Suisse initiated coverage of the stock with an "underperform" rating. Recently, the shares have been strong, adding 41.5% since hitting an annual low of $7.61 on Oct. 13. Wendys Co short-term speculators have been more call-skewed than normal, according the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.21, which is lower than 84% of all similar readings from the past year.

  • This morning, Wells Fargo cut its outlook on EMC to "market perform" from "outperform," though the shares are still 0.1% higher to $26.98. Most analysts, however, have kept a bullish stance on the shares, with 21 out of 25 covering brokerage firms rating them a "buy" or better, and not a single "sell" to be found. This, despite the stock underperforming the S&P 500 Index (SPX) in the past three months. Options traders have seemingly turned their backs on EMC Corporation. At the ISE, CBOE, and PHLX, the equity's 10-day put/call volume ratio of 0.72 sits higher than 85% of similar readings taken in the past year.

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