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)

Apr 8, 2015 at 9:25 AM
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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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