Analyst Downgrades: Yelp, Akamai, and Peabody Energy

Analysts downwardly revised their ratings on Yelp Inc (YELP), Akamai Technologies, Inc. (AKAM), and Peabody Energy Corporation (BTU)

by Alex Eppstein

Published on Jul 29, 2015 at 9:49 AM
Updated on Jul 2, 2020 at 2:28 PM

Analysts are weighing in today on business review site Yelp Inc (NYSE:YELP), cloud concern Akamai Technologies, Inc. (NASDAQ:AKAM), and coal company Peabody Energy Corporation (NYSE:BTU). Here's a quick roundup of today's bearish brokerage notes on YELP, AKAM, and BTU.

  • YELP has plunged 27.5% in early trading at $25.96 -- and hit a two-year low of $23.97 -- as the company's reduced full-year earnings outlook draws the ire of Wall Street. Specifically, Raymond James and Cowen and Company downgraded their ratings to "market perform" from "outperform," with the latter also slashing its price target to $25 from $55. In fact, 15 other brokerages lowered their price targets on Yelp Inc. This could be bad news for traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the last 10 weeks, YELP has accrued a call/put volume ratio of 3.44 -- higher than all but 1% of comparable readings from the previous year. An unwinding of this optimism could pressure the shares even lower.

  • second-quarter earnings miss and weaker-than-expected third-quarter forecast are weighing on AKAM. Adding insult to injury, Canaccord Genuity, Craig-Hallum, and D.A. Davidson each lowered their price targets. As such, the stock has opened at a 6.9% loss, trading at $68.59 -- below a recent level of support in the $69-$70 area. Over at the ISE, CBOE, and PHLX, traders have been betting bearishly on Akamai Technologies, Inc. The stock's 50-day put/call volume ratio of 0.53 rests near the top quartile of its 52-week range.

  • BTU has charted a steady path lower since April 2011, pressured in recent months by its descending 20-day moving average. The downtrend is continuing this morning, with the stock off 2.5% at $1.18 -- after touching an earnings-induced all-time low of $0.99 yesterday. Weighing on Peabody Energy Corporation are price-target cuts at BMO (to $1 from $2) and Deutsche Bank (to $0.90 from $1.30). Amid this long-term swoon, short sellers have been piling on. Over 39% of BTU's float is sold short. Elsewhere on the sentiment front, two-thirds of analysts rate the stock a "hold" or worse.

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