Analyst Downgrades: Shake Shack Inc, Dunkin Brands Group Inc, and Akamai Technologies, Inc.

Analysts downwardly revised their ratings on Shake Shack Inc (NYSE:SHAK), Dunkin Brands Group Inc (NASDAQ:DNKN), and Akamai Technologies, Inc. (NASDAQ:AKAM)

by Josh Selway

Published on Jul 9, 2015 at 9:38 AM
Updated on Jul 9, 2015 at 10:14 AM

Analysts are weighing in today on dine-in operation Shake Shack Inc (NYSE:SHAK), breakfast focus Dunkin Brands Group Inc (NASDAQ:DNKN), and cloud expert Akamai Technologies, Inc. (NASDAQ:AKAM). Here's a quick roundup of today's bearish brokerage notes on SHAK, DNKN, and AKAM.

  • SHAK was hit with another downgrade today, with Goldman Sachs cutting its outlook to "sell" from "neutral." Nevertheless, the stock was last seen 1.9% higher at $52.66, thanks to a broad-market halo lift. Longer term, the shares have lost nearly half their value since touching a post-IPO best of $96.75 on May 22, facing overhead pressure from their 10-day moving average. Wall Street certainly isn't fond of Shake Shack Inc at the moment, with the rest of the brokerage firms tracking the stock saying it's a "hold." SHAK's average 12-month price target, meanwhile, sits at $43.40. 

  • Goldman Sachs also weighed in on DNKN, lowering its opinion to "neutral" from "buy." The rest of the analyst community is split on the shares, with 11 calling them a "buy" or better, and 10 others saying they're a "hold." The security was last seen hovering around breakeven at $55.30 -- but remains roughly 30% higher year-to-date, and just touched a record high of $56.29 on Tuesday. However, option traders have been upping the bearish ante. Dunkin Brands Group Inc's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.58 is only 2 percentage points from an annual high. 

  • Deutsche Bank reduced its price target on AKAM to $77 from $79, but kept its "buy" assessment. With the shares last seen at $70.04 -- a 1.7% jump -- this represents a 10% upside move for the stock. Even though Akamai Technologies, Inc. is higher year-to-date, it's underperformed the S&P 500 Index (SPX) during the past three months. Short interest fell 24.5% during the two most recent reporting periods, suggesting bears were cashing in.
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

TOP STOCK PICKS 2020

Access your FREE insider report 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


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Software Stock Could Have Room to Run
The cloud stock could revisit record highs soon
Ulta Stock Moves Lower on New Coronavirus Measures
Ulta has closed all of its stores until further notice
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.