Analyst Downgrades: Halliburton, GM, and Vital Therapies

Analysts downwardly revised their ratings on Halliburton Company (NYSE:HAL), General Motors Company (NYSE:GM), and Vital Therapies Inc

Aug 24, 2015 at 9:53 AM
facebook twitter linkedin


Analysts are weighing in on oil-and-gas issue Halliburton Company (NYSE:HAL), automaker General Motors Company (NYSE:GM), and biotherapeutic firm Vital Therapies Inc (NASDAQ:VTL). Here's a quick roundup of today's bearish brokerage notes on HAL, GM, and VTL.

  • After closing at $35.69 on Friday, HAL has dropped 5.5% to trade at $33.72, and earlier touched an annual low of $30.93. Weighing on the stock is a continued sell-off in crude oil, as well as price-target cuts to $51 from both Susquehanna and Raymond James. Longer term, HAL has shed 42% since being swiftly rejected by its 320-day moving average last November. Option traders, meanwhile, have been betting on a bounce. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Halliburton Company's 10-day call/put volume ratio of 2.14 sits in the 75th annual percentile. In other words, calls have been bought to open over puts at a quicker-than-usual pace.

  • China's recent volatility has spread quickly to stocks with exposure to the mainland. GM is one such name, and in the past two months, the security has surrendered nearly 19% to trade at $28.17. What's more, the stock hit a two-year low of $24.62 out of the gate, after Morgan Stanley initiated coverage of GM with an "underweight" rating and a $27 price target, citing the risk China has created. Should the shares continue to struggle, more uninspiring analyst notes could be on the horizon -- which may translate into a fresh wave of selling pressure. Currently, eight out of 13 analysts maintain a "buy" or better recommendation for General Motors Company, with not a single "sell" to be found. Plus, the average 12-month price target of $40 stands at a 42% premium to current levels.

  • VTL has given back 77.4% to trade at $4 -- and touched a record-low of $3.51 -- after reports the company has halted late-stage trials for its liver therapy, ELAD, were met with a round of bearish brokerage attention. Credit Suisse, for example, lowered its outlook to "neutral" from "outperform" and its price target to $9 from $25. Elsewhere, SunTrust Robinson cut its rating to "neutral" from "buy," and slashed its price target by $45 to $5. William Blair also chimed it, reducing its rating to "market perform" and its target price to $5. Another round of negative analyst attention could come down the pike. All three brokerages covering Vital Therapies Inc maintain a "strong buy," while the stock's consensus 12-month price target of $35.60 is now a moonshot away. 

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check 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