Analyst Downgrades: SunPower Corp, LinkedIn Corporation, and Insulet Corporation

Analysts downwardly revised their ratings on SunPower Corporation (NASDAQ:SPWR), LinkedIn Corp (NYSE:LNKD), and Insulet Corporation (NASDAQ:PODD)

by Griffin Kruse

Published on May 1, 2015 at 9:29 AM

Analysts are weighing in on solar energy concern SunPower Corporation (NASDAQ:SPWR), professional networking website LinkedIn Corp (NYSE:LNKD), and medical device maker Insulet Corporation (NASDAQ:PODD). Here's a quick roundup of today's bearish brokerage notes on SPWR, LNKD, and PODD.

  • SPWR reported its first quarterly earnings loss since 2013 -- though the firm beat expectations on an adjusted per-share basis -- sending the shares down 4.2% ahead of the bell. In response, Cowen and Company cut its price target on the stock to $43 from $46. Heading into today's session, SunPower Corporation had been trending upwards, with the shares up nearly 25% year-to-date to finish Thursday at $32.19. However, traders have favored puts over calls in the options pits, as SPWR's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.51 reads in the 91st percentile of its annual range. Elsewhere, short interest decreased by 25% over the past two reporting periods, but still accounts for 10.5% of SPWR's available float. 
  • The shares of LNKD have plummeted 20.2% in pre-market trading, after the firm dramatically cut its revenue forecast for the current quarter. Reacting were no fewer than 21 brokerage firms, which all lowered their price targets and/or ratings on LinkedIn Corp. Specifically, the most dramatic cuts came from Brean Capital (to $172), FBR (to $180), and Wedbush (to $200). Technically speaking, LNKD settled yesterday at $252.13, and is poised to fill its early February bull gap out of the gate. What's more, today's drop will likely send LNKD south of its 80-day moving average, which has served as a key level of support in 2015. In the options pits, short-term traders have been more put-skewed than usual, as LNKD's Schaeffer's put/call open interest ratio (SOIR) of 1.04 is higher than 67% of all similar readings from the past year. 
  • PODD​ reported a steeper-than-expected first-quarter losssending the shares 13% lower -- and primed for annual-low territory -- in electronic trading. The news prompted no fewer than six brokerage firms to lower their price targets on the equity, such as J.P. Morgan Securities (to $26) and Wedbush (to $36). Looking back, today's fall is more of the same for Insulet Corporation, as the shares are down more than 35% year-to-date to close Thursday at $29.85 -- in large part due to a post-earnings bear gap in January. Despite this downtrend, options traders have been overwhelmingly bullish on the stock -- over the past 50 days at the ISE,CBOE, and PHLX, 81.16 PODD calls were bought to open for every put, which is a higher ratio than 94% of all other readings from the past year.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
CE Stock Heading into Bullish Month
Celanese stock is coming off a free fall from its all-time-high in late 2019
HD Stock Sinks on Bear Notes, In-Store Changes
Home Depot stock received price target cuts after sharing in-store changes
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.