Analyst Downgrades: SolarCity, Abercrombie, Charter Comm

Analysts downwardly revised their ratings on SolarCity Corp (NASDAQ:SCTY), Abercrombie & Fitch Co. (NYSE:ANF), and Charter Communications, Inc. (NASDAQ:CHTR)

Josh Selway

May 4, 2015 at 9:59 AM

Analysts are weighing in today on renewable energy focus SolarCity Corp (NASDAQ:SCTY), retailer Abercrombie & Fitch Co. (NYSE:ANF), and cable services provider Charter Communications, Inc. (NASDAQ:CHTR). Here's a quick roundup of today's bearish brokerage notes on SCTY, ANF, and CHTR.

SCTY has given back 2.3% this morning to trade at $60.18, after Baird lowered its opinion on the stock to "neutral," while slashing its price target to $65 from $76. Even with today's deficit, the security is 12.5% above its year-to-date breakeven level -- perhaps part of the reason call buying has been so popular of late. For instance, SolarCity Corp's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio comes in at 3.94 -- higher than 89% of similar readings from the past 12 months.Meanwhile, the firm is slated to take its turn in the earnings confessional after tomorrow's close.

Elsewhere, ANF is 2.3% lower today at $21.99, due to RBC initiating coverage on the shares with an "underperform" rating and $17 price target -- 22.7% below current levels and territory not seen since March 2009. Even before today, Abercrombie & Fitch Co. had given back over 21% in 2015, and short sellers have been rolling the dice on additional losses. By the numbers, nearly 35% of ANF's float is sold short, accounting for almost two weeks' worth of trading, at average daily volumes. There's a chance more struggles are ahead for the equity, too, given that six brokerage firms still deem it a "strong buy."

Amid increasing speculation the company could merge with Time Warner Cable Inc (NYSE:TWC), CHTR is up 1.5% today at $190.21, even after seeing some bearish analyst attention. Specifically, the stock's price target was reduced at Baird (to $190) and Canaccord Genuity (to $205), though the latter kept its "buy" endorsement. Elsewhere, Raymond James raised its price target to $210 -- territory yet to be charted. All of this comes after the company reported disappointing first-quarter numbers on Friday. On the sentiment front, Charter Communications, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 2.06 ranks in the 96th annual percentile, meaning short-term speculators have rarely been as put-skewed as they are now.

Follow @Schaeffers

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?