Analyst Downgrades: Whole Foods Market, Yelp, Qorvo

Analysts downwardly revised their ratings on Whole Foods Market, Inc. (WFM), Yelp Inc (YELP), and Qorvo Inc (QRVO)

Jul 30, 2015 at 9:38 AM
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Analysts are weighing in today on organic grocer Whole Foods Market, Inc. (NASDAQ:WFM), business review site Yelp Inc (NYSE:YELP), and tech issue Qorvo Inc (NASDAQ:QRVO). Here's a quick roundup of today's bearish brokerage notes on WFM, YELP, and QRVO.

  • WFM plunged to a three-year low of $35.99 out of the gate, and was last seen down 10.7% at $36.44, after the company's disappointing turn on the earnings stage. Adding insult to injury, no fewer than 11 analysts issued bearish notes on the stock earlier. For example, Canaccord Genuity downgraded its opinion on Whole Foods Market, Inc. to "hold" from "buy," and cut its price target to $38, while Sterne Agee CRT lowered its rating to "neutral" from "buy," and slashed its price target to $37. Though shareholders are feeling the heat, short sellers are likely dancing in the streets. More than 20 million WFM shares are sold short, representing six days of trading, at typical volumes. Along similar lines, recent put buyers are probably happy with the stock's sell-off.

  • YELP got demolished yesterday, and touched a two-year low of $23.66, on the heels of a downwardly revised full-year outlook. Today, however, the shares are up 0.8% at $25.26, despite a downgrade to "neutral" at MKM Partners, and a price-target cut to $45 at FBN Securities. With the security's 14-day Relative Strength Index (RSI) settling last night at 15 -- deep in oversold territory -- a near-term bounce may have been in the cards. Nevertheless, Yelp Inc has surrendered more than half its value in 2015, yet traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 3.37 calls for every put over the last 50 sessions. The corresponding call/put volume ratio sits 1 percentage point from an annual high. A capitulation among these bullish holdouts could have bearish implications for the stock.

  • Despite reporting better-than-expected fiscal first-quarter results, QRVO is getting battered with negative attention due to a disappointing current-quarter revenue forecast. Specifically, no fewer than 11 analysts cut their price targets on the equity, with Barclays setting the lowest bar, at $65. Downgrades could also be forthcoming, considering Qorvo Inc has received 11 "buy" or better assessments, versus just a pair of "holds" and not a single "sell" recommendation. Out of the gate, QRVO has plunged 14.1% to trade at $60.56, wiping out its year-to-date gains.

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