Analyst Update: ARM Holdings, Groupon, Allegiant

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

Jul 8, 2015 at 11:47 AM
facebook twitter linkedin


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.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners