Analyst Update: Advanced Micro, Schnitzer Steel

Analysts adjusted their ratings on Advanced Micro Devices, Inc. (NASDAQ:AMD), Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), and Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)

by Josh Selway

Published on Jul 1, 2015 at 1:59 PM
Updated on Jun 29, 2020 at 3:33 PM

Analysts are weighing in today on semiconductor producer Advanced Micro Devices, Inc. (NASDAQ:AMD), scrap metal maven Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), and energy giant Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR). Here's a quick look at today's brokerage notes on AMD, SCHN, and PBR.

  • It hasn't been a great year for AMD. Coming into today, the shares were off 10.1% in 2015. This afternoon, however, they've moved off their session lows to trade 1.9% higher at $2.44, despite an earlier price-target cut to $3 from $3.50 at FBR. The Street, meanwhile, has taken a bearish stance on the stock, as 78% of brokerage firms say it's a "hold" or worse. Also, traders haven't been afraid to short Advanced Micro Devices, Inc. Short interest represents 18.5% of the security's float, and it would take bears close to three weeks to repurchase the shares, at AMD's normal daily volumes.

  • SCHN is booming today, gaining 14.4% to trade at $19.99, thanks to an upgrade to "buy" at BofA-Merrill Lynch. Even though the shares remain below breakeven on a year-to-date basis, they've been gaining traction lately, outpacing the S&P 500 Index (SPX) by 8 percentage points in the past three months. Option traders apparently aren't convinced. More than two puts have been bought to open for each call during the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

  • Conversely, PBR isn't so lucky today, with the shares dropping 3% to hit $8.77. The decline comes despite an upgrade to "hold" from "reduce" at HSBC, which also raised its price target to $9 from $6 -- and in the wake of yesterday's big energy initiative between Brazil and the U.S. The stock has been on the rise in recent months, tacking on 80% since its 11-year low $4.90 on March 13. Still, according to Petroleo Brasileiro Petrobras SA's Schaeffer's put/call open interest ratio (SOIR) of 1.32, short-term option traders have only been more put-skewed 3% of the time in the past 12 months. 

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