Analyst Downgrades: Twitter, Akorn, Inc., and 3D Systems

Analysts downwardly revised their ratings on Twitter Inc (TWTR), Akorn, Inc. (AKRX), and 3D Systems Corporation (DDD)

Apr 27, 2015 at 9:46 AM
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Analysts are weighing on microblogging platform Twitter Inc (NYSE:TWTR), biopharmaceutical firm Akorn, Inc. (NASDAQ:AKRX), and 3-D printing concern 3D Systems Corporation (NYSE:DDD). Here's a quick roundup of today's bearish brokerage notes on TWTR, AKRX, and DDD.

  • Suntrust Robinson cut its rating on TWTR to "neutral" from "buy" while lowering its price target to $50 from $58, although the shares were last seen 1.9% higher to $51.78. Heading into today's session, Twitter Inc has been a technical standout, with the shares up 44.4% year-to-date. Short sellers have taken a shine to the equity, though, as short interest increased by 10.7% over the past reporting period -- and now comprises 5.3% of TWTR's available float. Meanwhile, the brokerage bunch remains skeptical, as 44% of covering analysts rate it a "hold" or "strong sell." Should TWTR report stronger-than-expected earnings tomorrow night, a mass exodus of bears could add fuel to the stock's fire. 
  • The shares of AKRX are 17.3% lower, after the firm announced that is restating its earnings reports for 2014 due to the discovery of several errors that upwardly misconstrued revenue figures. In response, J.P. Morgan Securities and Piper Jaffray both cut their price targets on Akorn, Inc. -- to $58 and $53, respectively -- with the former reaffirming its "overweight" rating, and the latter downgrading its opinion to "neutral" from "overweight." We believe that significant management changes will be needed to restore Akom's credibility," said Piper Jaffray, which also suggested a CFO change could be on the horizon. On the charts, AKRX was an outperformer, with the shares up over 131% year-over-year to hit a record high of $57.10 on Friday. However, options traders have been buying puts at a faster-than-usual clip lately. Drilling down, over the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 0.35 AKRX puts have been bought to open for every call, which is a higher ratio than 81% of all similar readings from the past year. 
  • After Friday's guidance-induced drop, DDD woke up to no fewer than seven price-target cuts, sending the shares 4.1% lower. The loftiest cuts came from Canaccord Genuity, which lowered its price target by $23 to $27 and its rating to "hold" from "buy," as well as Credit Suisse, which slashed its price target by $14 to $40 while reiterating a "neutral" rating. Short sellers have been active on the security, as 36.5% of its available float is sold short. It would take these bettors over four weeks to cover their positions, at average trading volumes. Meanwhile, a majority of analysts covering DDD are apprehensive, as two-thirds of them rate it a "hold" or worse. 





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