Analyst Downgrades: GrubHub, Mylan, and Diana Shipping

Analysts downwardly revised their ratings on GrubHub Inc (GRUB), Mylan NV (MYL), and Diana Shipping Inc. (DSX)

Jul 27, 2015 at 9:54 AM
facebook twitter linkedin

Analysts are weighing in today on food-ordering app GrubHub Inc (NYSE:GRUB), drugmaker Mylan NV (NASDAQ:MYL), and Greece-based transportation issue Diana Shipping Inc. (NYSE:DSX). Here's a quick roundup of today's bearish brokerage notes on GRUB, MYL, and DSX.

  • Cowen and Company lowered its opinion on GRUB to "market perform" from "outperform," and slashed its price target to $30 from $39. The negative note -- which comes just ahead of the company's second-quarter earnings report, due out tomorrow morning -- has the shares 10% lower at $30.40. In fact, since hitting a record high of $47.95 in late March, GrubHub Inc has surrendered 36.6%. This could set the stage for future downgrades and/or price-target cuts, as all 14 covering analysts consider the shares a "buy" or better. What's more, GRUB's consensus 12-month price target of $47.88 sits in territory not charted in nearly four months.On the flip side, options traders remain quite bearish toward the security.

  • MYL's buyout bid from Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has been withdrawn, as the latter agreed to purchase Allergan PLC (NYSE:AGN) instead. The news has leveled Mylan NV shares, down 14.2% at $56.60 -- nearly wiping out the equity's year-to-date lead. Adding insult to injury, Cowen and Company downgraded the stock to "market perform" from "underperform," and reduced its price target to $65 from $80. The bear gap is a welcome development for recent put buyers. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open puts over calls at an accelerated clip, per MYL's put/call volume ratio of 0.46, which ranks in the 72nd annual percentile.

  • DSX is down 3.2% out of the gate at $7.27, following a downgrade to "sell" from "hold" at Evercore ISI -- though the brokerage firm upped its price target to $6 from $5.50. Still, the shares remain 8.3% higher year-to-date. Short sellers foresee more downside ahead for Diana Shipping Inc., with short interest spiking 23.5% during the last two reporting periods. At present, 6% of the stock's float is sold short, which would take more than a week to repurchase, at DSX's typical daily trading clip. Looking ahead, the company will hit the earnings confessional on Friday morning.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1