Analyst Downgrades: Apple, Trina Solar, Lions Gate

Analysts downwardly revised their ratings on Apple Inc. (AAPL), Trina Solar Limited (ADR) (TSL), and Lions Gate Entertainment Corp. (USA) (LGF)

Josh Selway

Apr 8, 2015 at 9:25 AM

Analysts are weighing in today on tech giant Apple Inc. (NASDAQ:AAPL), solar power player Trina Solar Limited (ADR) (NYSE:TSL), and entertainment company Lions Gate Entertainment Corp. (USA) (NYSE:LGF). Here's a quick roundup of today's bearish brokerage notes on AAPL, TSL, and LGF.

Shares of AAPL have been in a technical lull of late, churning mostly between the $120-$130 range since touching an all-time high of $133.60 in late February. Ahead of today's open, Apple Inc. is looking at a 0.3% dip, after SocGen cut the security to "hold" from "buy." Still, most brokerage firms maintain faith in the shares, as 21 call AAPL a "buy" or better, versus six "holds" and not a single "sell." Elsewhere, call open interest continues to outweigh put open interest by a considerable amount, at least among options expiring in the next three months. This, according to the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.67, which is lower than 62% of similar readings from the past year. In other words, short-term options traders are more call-skewed than usual. AAPL closed at $126.01 yesterday.

In electronic trading, TSL has surrendered 1.7% after being downgraded to "neutral" from "buy" at BofA-Merrill Lynch. The demotion may come as a surprise to some, as the shares have picked up 30.6% in 2015, settling at $12.09 at yesterday's close. Regardless, options traders haven't been afraid to bet bearishly on Trina Solar Limited. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.96 ranks in the 85th annual percentile. In other words, put buying has been more popular than usual of late, compared to call buying.

After LGF reported that its largest shareholder, MHR Fund Management, was selling 10 million shares, the stock was hit with a $1 price-target cut to $39 at FBR. The brokerage firm did maintain its "outperform" rating on the shares, which have added 31.2% over the past 52 weeks, finishing at $33.68 yesterday. However, Lions Gate Entertainment Corp. is looking at a 6.5% drop out of the gate, and short sellers are likely celebrating. Short interest represents 17.7% of LGF's float, or 15 sessions' worth of trading, at normal daily volumes.

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