Analyst Downgrades: Cisco Systems, Inc., EZchip Semiconductor Ltd, and Identiv Inc.

Analysts downwardly revised their ratings on Cisco Systems,Inc. (NASDAQ:CSCO), EZchip Semiconductor Ltd (NASDAQ:EZCH), and Identiv Inc (NASDAQ:INVE)

by Griffin Kruse

Published on May 14, 2015 at 9:29 AM
Updated on May 14, 2015 at 9:33 AM

Analysts are weighing in today on blue chip Cisco Systems, Inc. (NASDAQ:CSCO), chipmaker EZchip Semiconductor Ltd (NASDAQ:EZCH), and security technology firm Identiv Inc (NASDAQ:INVE). Here's a quick roundup of today's bearish brokerage notes on CSCO, EZCH, and INVE.

  • The shares of CSCO are 1% lower in electronic trading, despite the company's fiscal third-quarter earnings beat. Furthermore, the blue chip addressed yesterday's rumors about a potential acquisition of FireEye Inc (NASDAQ:FEYE), with CEO John Chambers saying, "We won't comment on rumors about acquisitions or not. But I wouldn't bet on the one that you heard today." While a handful of analysts lifted their price targets on CSCO, Sterne Agee downgraded the stock to "neutral." Heading into today's session, Cisco Systems, Inc. has been trending upwards, with the shares up roughly 5.5% year-to-date to finish Wednesday at $29.35 -- just south of the stock's seven-year high of $30.31, tagged March 2. However, puts have been more prominent than usual in the options pits, as CSCO's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.49 ranks in the 62nd annual percentile. 
  • EZCH plummeted to a five-year low of $14.30 yesterday, due to CSCO's plan to phase out one of its chips, and the shares are poised to extend their journey lower today. Reacting were Chardan and Jefferies, which lowered their price targets to $15 and $16.50, respectively. Technically speaking, EZchip Semiconductor Ltd is now down 22.5% year-to-date to close yesterday at $14.84. However, despite the stock's long-term downtrend, traders have favored calls over puts in the options pits, as EZCH's 50-day ISE/CBOE/PHLX call/put volume ratio of 7.10 is higher than 93% of all comparable readings from the past year. 
  • Cowen and Company cut its price target on INVE to $18 from $24 while keeping its "outperform" rating, after the firm posted a wider-than-expected first-quarter loss. At last check, the shares of Identiv Inc were 3.9% lower ahead of the bell, which will steepen their 35.9% year-to-date deficit. Despite this downtrend, short-term traders have been more call-skewed than usual. Drilling down, INVE's Schaeffer's put/call open interest ratio (SOIR) of 1.14 stands in the 97th percentile of its annual range. Said another way, near-term speculators have only been more call-heavy on INVE 3% of the time over the last 12 months. 

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