Analyst Downgrades: Transocean Ltd., Keurig Green Mountain, Inc., and Yelp Inc.

Analysts downwardly revised their ratings on Transocean LTD (NYSE:RIG), Keurig Green Mountain Inc (NASDAQ:GMCR), and Yelp Inc (NYSE:YELP)

by Josh Selway

Published on Jul 6, 2015 at 9:32 AM
Updated on Jul 6, 2015 at 10:38 AM

Analysts are weighing in today on offshore drilling concern Transocean LTD (NYSE:RIG), coffee brewer Keurig Green Mountain Inc (NASDAQ:GMCR), and review site Yelp Inc (NYSE:YELP). Here's a quick roundup of today's bearish brokerage notes on RIG, GMCR, and YELP.

  • RIG is no stranger to bearish analyst attention, as every brokerage firm covering the stock says it's a "hold" or worse. Susquehanna is piling on the pessimistic outlook, lowering its price target to $13 from $14 while underscoring a "negative" rating. The shares have had a miserable time on the charts, losing 65% in the past 12 months, finishing last week at $15.59. Analysts certainly aren't the only ones wary of Transocean LTD. Almost 27% of the equity's float is sold short, which would take over 11 sessions to buy back, at normal daily volumes.

  • GMCR has struggled in 2015, and SunTrust Robinson is expecting more downside. The brokerage firm lowered its price target to $70 from $95, which would mark annual-low territory for the stock, and represents a discount to Thursday's close at $74.33. Elsewhere, option activity has turned bullish, with Keurig Green Mountain Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.57 sitting higher than three-fourths of readings from the past year. These traders may be on to something, too. GMCR's 14-day Relative Strength Index (RSI) is in oversold territory at 21.

  • YELP is set to fall 1% out of the gate, hurt by price-target cuts at Piper Jaffray and B. Riley. The former moved its price target down to $40, with the latter setting its mark at $30.50 -- territory the stock hasn't explored since June 2013. After being halted, Yelp Inc touched a two-year low of $36.10 on Thursday before closing at $38.18, and more losses could be forthcoming. Half of the analysts covering YELP say it's a "buy" or better still. Additional bearish brokerage notes could act as headwinds for the struggling stock. 

A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Cannabis Stock Rally Cut Short after Downgrade
Aurora Cannabis did receive a price-target hike from Jefferies, though
Vaccines, China Trigger Roller Coaster Week for Stocks
Moderna's vaccine captured the attention of Wall Street
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.