Analyst Downgrades: SunPower, LinkedIn, and Insulet

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

May 1, 2015 at 9:29 AM
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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.
 

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