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Analyst Downgrades: HP, Chevron, and The Fresh Market

Analysts downwardly revised their ratings on Hewlett-Packard Company (HPQ), Chevron Corporation (CVX), and The Fresh Market Inc (TFM)

Aug 21, 2015 at 9:53 AM
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Analysts are weighing in today on computer hardware specialist Hewlett-Packard Company (NYSE:HPQ), energy issue Chevron Corporation (NYSE:CVX), and organic grocer The Fresh Market Inc (NASDAQ:TFM). Here's a quick roundup of today's bearish brokerage notes on HPQ, CVX, and TFM.

  • HPQ is getting hit with bearish brokerage notes, after the company posted mixed quarterly results. Specifically, no fewer than five analysts lowered their price targets on the stock -- including Cantor, which cut its target price to $29 from $33. Amid these negative notes, Hewlett-Packard Company fell to a new annual low of $26.94 out of the gate, but has since moved 5.8% higher to $28.94. Year-to-date, though, the shares are still staring at a 28% deficit. Option traders have been banking on even more downside, as well, based on data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). HPQ's 10-day put/call volume ratio across this trio of exchanges is 1.18, higher than 91% of all other readings from the previous year.

  • CVX has been swooning in sympathy with crude oil, and this morning touched a nearly five-year low of $78.81. At last check, though, the shares were down 0.1% at $79.18, following a price-target cut to $99 from $115 from SocGen. Nonetheless, short-term option traders are pretty call-skewed right now, based on Chevron Corporation's Schaeffer's put/call open interest ratio (SOIR) of 1.01 -- which ranks in the 22nd annual percentile. Should CVX continue to struggle, an unwinding of these bullish holdouts could result in additional headwinds.

  • On the heels of lackluster second-quarter results, TFM is getting pummeled by Wall Street. Specifically, BB&T lowered its rating to "hold," William Blair downgraded the stock to "market perform," and no fewer than eight analysts slashed their price targets on the stock. Out of the gate, The Fresh Market Inc has slid almsot 20% to trade at $21.31 and into record-low territory. While the shares are on today's short-sale restricted list, short sellers have been upping the ante in prior weeks. During the latest reporting period, short interest on TFM increased 7.8%, and now accounts for over 28% of the equity's float. At the stock's typical daily trading levels, it would take more than four weeks to buy back all of these positions.

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