Analyst Update: ARM Holdings plc, Groupon Inc, and Allegiant Travel Company

Analysts revised their ratings on ARM Holdings plc (ADR) (NASDAQ:ARMH), Groupon Inc (NASDAQ:GRPN), and Allegiant Travel Company (NASDAQ:ALGT)

by Karee Venema

Published on Jul 8, 2015 at 11:47 AM
Updated on Jul 8, 2015 at 12:15 PM

Analysts are weighing in on tech issue ARM Holdings plc (ADR) (NASDAQ:ARMH), online coupon concern Groupon Inc (NASDAQ:GRPN), and airline stock Allegiant Travel Company (NASDAQ:ALGT). Here's a quick roundup of today's brokerage notes on ARMH, GRPN, and ALGT.

  • Similar to fellow chipmaker Intel Corporation (NASDAQ:INTC), ARMH received some bearish brokerage attention earlier (its second batch in as many weeks). Specifically, Canaccord Genuity lowered its price target on the shares to $60 from $63 -- although this still represents expected upside of 28.6% to ARMH's current perch at $46.66, and a move into uncharted territory. The negative analyst note has the shares 3.9% lower in intraday action, and south of their 320-day moving average for the first time since mid-January. Meanwhile, in the options pits, short-term traders have shown a distinct preference for puts over calls. In fact, ARM Holdings plc's Schaeffer's put/call open interest ratio (SOIR) of 1.78 ranks 1 percentage point from an annual peak.

  • Evercore ISE cut its price target on GRPN to $6 from $7.50, sending the stock 0.1% lower at midday to churn near $4.86. Longer term, shares of Groupon Inc have surrendered roughly 41% year-to-date, and hit a two-year low of $4.74 yesterday. Option traders have been betting on a bounce, though, and at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GRPN's 10-day call/put volume ratio of 8.84 ranks in the 74th annual percentile. In other words, calls have been bought to open over puts at a faster-than-usual clip in recent weeks.

  • Unlike sector peer United Continental Holdings Inc (NYSE:UAL), ALGT is trading higher today -- up 2.9% at $188.25. Stoking the bullish flames are a solid June traffic report and subsequent price-target hike to $185 from $175 at Cowen and Company. Today's positive price action is just more of the same for a stock that's rallied 25% in 2015 -- and is within striking distance of its March 18 record high of $199.20. Additional bullish brokerage notes could be on the horizon, too, should Allegiant Travel Company continue to outperform. The majority of analysts covering the shares currently maintain a lukewarm "hold" recommendation, while the average 12-month price target of $194.17 is roughly 3% away from ALGT's present perch.

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