Analyst Downgrades: Micron, SanDisk, Schlumberger

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

Mar 31, 2015 at 9:23 AM
facebook twitter linkedin


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.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners