Analyst Downgrades: Verizon, Chesapeake Energy, and Twitter

Analysts downwardly revised their ratings and price targets on Verizon Communications Inc. (NYSE:VZ), Chesapeake Energy Corporation (NYSE:CHK), and Twitter Inc (NYSE:TWTR)

Jun 4, 2015 at 9:38 AM
facebook X logo linkedin

Analysts are weighing in today on wireless behemoth Verizon Communications Inc. (NYSE:VZ), commodity concern Chesapeake Energy Corporation (NYSE:CHK), and microblogging issue Twitter Inc (NYSE:TWTR). Here's a quick roundup of today's bearish brokerage notes on VZ, CHK, and TWTR.

  • J.P. Morgan Securities lowered its outlook on VZ to "neutral" from "overweight," and now the shares are 1.9% lower at $48.17. (On the flip side, the brokerage firm was much kinder to this rival.) With the dip, Verizon Communications Inc.'s year-to-date lead falls to 2.9%, and option traders are likely cheering. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio comes in at 1.37 -- ranking in the 87th percentile of its annual range. In other words, put buying has been more popular than normal during the past two weeks. 

  • CHK is off 1.9% at $13.30 today -- a new three-year low -- after Deutsche Bank cut its price target to $16 from $18. This just adds insult to injury, with the stock now down over 32% in 2015. No wonder, then, most analysts are on the bearish side. That is, 16 of 20 brokerage firms say Chesapeake Energy Corporation is a "hold" or worse. It's not just the brokerage bunch that's skeptical. Nearly 22% of CHK's float is sold short, which would take over a week to buy back, at its average trading pace.

  • Evercore ISI reduced its price target on TWTR -- while doing the opposite to sector peer Facebook Inc (NASDAQ:FB) -- by $10 to $39, and downgraded the stock to "hold." Regardless, the equity is 0.6% higher at $37.21 today. Since its bear gap in late April, the stock has been consolidating in this area, and option traders have been betting on a breakout. Twitter Inc's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.65 is higher than 73% of readings from the past year. Not everyone shares this optimism, though. During the most recent two-week reporting period, short interest on TWTR rose by almost 23%.

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