Analyst Downgrades: Autodesk, Seadrill, and Aeropostale

Analysts downwardly revised their ratings on Autodesk, Inc. (NASDAQ:ADSK), Seadrill Ltd (NYSE:SDRL), and

by Karee Venema

Published on Aug 28, 2015 at 9:39 AM
Updated on Jul 2, 2020 at 2:38 PM

Analysts are weighing in on software specialist Autodesk, Inc. (NASDAQ:ADSK), oil-and-gas issue Seadrill Ltd (NYSE:SDRL), and specialty retailer Aeropostale Inc (NYSE:ARO). Here's a quick roundup of today's bearish brokerage notes on ADSK, SDRL, and ARO.

  • Last night, ADSK reported a drop in second-quarter revenue and downwardly revised its full-year forecast -- prompting a round of negative analyst attention. BofA-Merrill Lynch, for example, lowered its price target to $45 from $48, while Wedbush cut its target price by $6 to $51. Against this backdrop, the stock is 4.8% lower out of the gate at $47.61, widening its year-to-date deficit to over 20%. In the options pits, it appears traders have been bracing for a post-earnings plop. Autodesk, Inc.'s 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.48 ranks in the 87th annual percentile. Simply stated, puts have been bought to open over calls at a faster-than-usual clip. 

  • It's been a volatile week for SDRL, which has been tracking the whipsaw price action in the commodities market. Today, the shares are down 3.3% to $7.14, following a price-target cut to $7 from $10 at Credit Suisse. While the brokerage firm said the company was being "proactive" in lowering its debt ratio, it hasn't done enough. Overall, the shares have surrendered more than 40% year-to-date, and there's plenty of room for more price-target cuts to come down the pike. Currently, Seadrill Ltd's  consensus 12-month price target of $12.98 stands at an 82% premium to current levels.

  • ARO is off 9.2% this morning at $1.14, after the company -- unlike sector peer Abercrombie & Fitch Co. (NYSE:ANF) -- posted its 11th straight quarterly loss. Also pressuring the shares are price-target cuts at Jefferies (to $1.25), SunTrust Robinson (to $1.35), and Mizuho (to $1.50). Today's price move is just more of the same for a stock that's shed nearly 51% year-to-date, and bottomed at a record low of $1.02 on Monday. As such, short sellers have been cashing in their winning bets, with short interest down 6.2% in the latest reporting period. However, these bearish bets still account for more than a quarter of Aeropostale Inc's available float, or 10.7 times the stock's average daily trading volume.

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!


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter