Analyst Downgrades: Wynn Resorts, Amkor, The Container Store

Analysts downwardly revised their ratings on Wynn Resorts, Limited (WYNN), Amkor Technology, Inc. (AMKR), and Container Store Group Inc (TCS)

by Griffin Kruse

Published on Apr 28, 2015 at 9:29 AM
Updated on Jul 8, 2020 at 11:27 AM

Analysts are weighing on hotel and casino concern Wynn Resorts, Limited (NASDAQ:WYNN), semiconductor firm Amkor Technology, Inc. (NASDAQ:AMKR), and storage and organization product maker Container Store Group Inc (NYSE:TCS). Here's a quick roundup of today's bearish brokerage notes on WYNN, AMKR, and TCS.

  • WYNN woke up to a price-target cut to $159 from $189 by Susquehanna (which also reaffirmed its "positive" rating of the stock), sending the shares 0.6% lower in electronic trading. The price-target cut comes just ahead of the firm's turn in the earnings spotlight tonight. Technically speaking, Wynn Resorts, Limited has been an underperformer recently, with the shares down over 33% year-over-year to settle Monday at $128.83. However, traders have shown a distinct preference for calls over puts in the options pits, as WYNN's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.71 is higher than 96% of all similar readings from the past year. Meanwhile, the brokerage bunch has stayed skeptical of the equity, as 60% of covering analysts rate it a "hold."
  • The shares of AMKR are down 10.5% ahead of the bell, after the company forecast current-quarter profits below consensus estimates. In response, Topeka Capital lowered its price target on the stock to $9 from $11, but maintained a "buy" opinion. On the charts, Amkor Technology, Inc. has taken a step back since hitting a year-to-date high of $10.13 on March 3, down 21.6% to finish yesterday at $7.94. Many traders are likely bemoaning today's drop -- over the past 50 days at the ISE/CBOE/PHLX, 23.83 AMKR calls have been bought to open for every put, which is a higher ratio than 93% of all equivalent readings from the last 12 months. On the flip side, short interest surged by roughly 62% over the past two reporting periods, and now accounts for 7.3% of AMKR's available float. It would take these bettors over a week to cover their positions, at average trading volumes.
  • TCS posted fiscal fourth-quarter earnings that failed to meet analysts' predictions and offered weak guidance for fiscal 2015, prompting J.P. Morgan Securities and Sterne Agee to lower their price targets, to $21 and $17 respectively. In addition, Jefferies slashed its price target to $15 from $21. At last check, the shares of Container Store Group Inc were 24.4% lower in pre-market trading, and could explore record lows. Prior to today's drop, though, the stock had been trending upwards, with the shares up 13.4% year-to-date to close Monday at $21.69. Today's plummet is likely music to the ears of short sellers, as over 26% of TCS' available float is sold short, which would take 14 sessions to cover, at average trading volumes. Meanwhile, seven out of nine covering analysts rate the equity a "hold" or "strong sell."

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