Analyst Downgrades: Micron, SanDisk, Schlumberger

Analysts downwardly revised their ratings on Micron Technology, Inc. (MU), SanDisk Corporation (SNDK), and Schlumberger Limited (SLB)

by Griffin Kruse

Published on Mar 31, 2015 at 9:23 AM
Updated on Jun 29, 2020 at 11:47 AM

Analysts are weighing in on semiconductor issue Micron Technology, Inc. (NASDAQ:MU), data solutions specialist SanDisk Corporation (NASDAQ:SNDK), and oil-and-gas concern Schlumberger Limited (NYSE:SLB). Here's a quick roundup of today's bearish brokerage notes on MU, SNDK, and SLB.

  • Wedbush cut its price target on MU by $5 to $35, but kept its "outperform" opinion, sending the shares down about 0.2% in electronic trading. On the charts, Micron Technology, Inc. has been sliding, down 32.6% since hitting a near-13-year high of $36.59 on Dec. 8, to close yesterday at $26.68. Accordingly, sentiment in the options pits has hit a pessimistic peak ahead of tomorrow's trip to the earnings confessional. Drilling down, MU's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.51 reads in the 100th percentile of its annual range. Simply stated, puts have never been bought to open over calls at a faster clip during the past year.

  • SNDK is 0.4% lower in pre-market trading, after RBC slashed its price target on the equity by $18 to $78, but reaffirmed its "outperform" rating. The price-target revision comes as little surprise, considering the shares of SanDisk Corporation have shed about 33.7% year-to-date to finish yesterday's session at $64.98. In fact, SNDK touched an annual low of $63.56 on Friday, as the stock gapped lower on disappointing guidance. Despite this weak performance of late, the brokerage bunch is still mostly bullish on the equity -- two-thirds of covering analysts rate the stock a "buy" or "strong buy," with no "sell" or worse recommendations to be found. Additionally, SNDK's consensus 12-month price target of $81.59 stands at a 25.6% premium to current trading levels, showing that more bearish brokerage attention could be on the horizon.

  • Wells Fargo weighed in on a number of oil-and-gas firms this morning, slashing its rating on SLB to "market perform" from "outperform." At last check, the shares of Schlumberger Limited -- which closed at $84.48 last night -- were following crude futures into the red, down 1.4% in electronic trading, and poised to steepen a 13.4% year-over-year deficit. Bears have been active in the options pits, as SLB's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.74 ranks higher than 91% of all equivalent readings taken over the past year. On the other hand, 74% of covering analysts rate the shares a "buy" or better, implying that a bullish mentality is still popular among the brokerage bunch.

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