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 twitter 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%.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners