Analyst Downgrades: Twitter, Buffalo Wild Wings, Stratasys

Analysts downwardly revised their ratings on Twitter Inc (TWTR), Buffalo Wild Wings (BWLD), and Stratasys, Ltd. (SSYS)

Apr 29, 2015 at 9:44 AM
facebook X logo linkedin

Analysts are weighing in today on microblogging platform Twitter Inc (NYSE:TWTR), chicken wing king Buffalo Wild Wings (NASDAQ:BWLD), and 3-D printing specialist Stratasys, Ltd. (NASDAQ:SSYS). Below, we'll break down how options traders are positioning themselves, and how much speculators are willing to pay for their bets on TWTR, BWLD, and SSYS. 

  • TWTR's first-quarter earnings report was leaked about an hour early yesterday, which briefly halted trading before sending the shares nearly 18% lower to finish Tuesday at $42.27. What's more, the shares of Twitter Inc have plunged more than 5% out of the gate, and are now testing the round-number $40 level, as traders continue to react to the company's disappointing revenue figures and bleak 2015 sales forecast. Plus, the stock landed on the short-sale restricted (SSR) list. In response, no fewer than 21 brokerage firms downwardly revised their price targets on the security, with the largest cuts coming from Cowen and Company (to $38) and Stifel (to $36). Heading into earnings, traders have favored calls over puts in the options pits, as TWTR's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.09 ranks in the 98th percentile of its annual range.
  • The shares of BWLD are down 10.7% at $163.99 -- and on the SSR list -- after the company posted first-quarter earnings that failed to meet consensus estimates, possibly due in part to a 41% increase in the price of poultry. Reacting were Jefferies, Cowen and Company, and Barclays, which cut their price targets to $172, $208, and $195, respectively. On the charts, Buffalo Wild Wings is now on pace to end beneath its 200-day moving average for the first time since late October, and is 8.9% in the red year-to-date. However, sentiment in the options pits has been bullish, as BWLD's 10-day ISE/CBOE/PHLX call/put volume ratio of 1.18 is higher than 73% of all equivalent readings from the past year. Meanwhile, short interest surged by 11.9% over the last reporting period, and now accounts for nearly 10% of BWLD's available float. 
  • SSYS said in a statement that its first-quarter earnings will fail to topple expectationssending the shares down roughly 20% to a new three-year low of $41.14 -- and onto the SSR list -- out of the gate. In response, no fewer than eight brokerage firms revised their price targets and/or ratings on the stock. For instance, Piper Jaffray cut its price target to $45 from $64 while keeping its "neutral" rating, and Needham cut its price target to $54 from $70 while underscoring its "buy" opinion. On the other hand, Craig Hallum upgraded Stratasys, Ltd. to "buy" from "hold," but did decrease its price target to $52 from $68. Technically speaking, SSYS has been a long-term underperformer, with the shares down nearly 50% year-to-date. Not surprisingly, puts have been prominent in the options pits, as SSYS' 50-day ISE/CBOE/PHLX put/call volume ratio of 0.87 is higher than 85% of all similar readings from the past year. 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI