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.

A Schaeffer's exclusive!

The Expert's Guide

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


 
 

Partnercenter


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


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Patent Lawsuit Loss Sends AMRN Stock Spiraling
Amarin just lost a major U.S. patent lawsuit for its heart drug Vascepa
RH Stock Sinks Despite Earnings Beat
J.P. Morgan Securities and Cowen and Company cut their price targets
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.