Analyst Downgrades: Twitter, Verint Systems, Ambarella

Analysts downwardly revised their ratings on Twitter Inc (TWTR), Verint Systems Inc. (VRNT), and Ambarella Inc (AMBA)

Sep 3, 2015 at 9:47 AM
facebook twitter linkedin


Analysts are weighing in today on microblogging platform Twitter Inc (NYSE:TWTR), tech stock Verint Systems Inc. (NASDAQ:VRNT), and semiconductor specialist Ambarella Inc (NASDAQ:AMBA). Here's a quick roundup of today's bearish brokerage notes on TWTR, VRNT, and AMBA.

  • TWTR has been a disaster on the charts recently, hitting a record low of $21.01 late last month and losing more than one-fifth of its value in 2015. As such, Canaccord Genuity cut its price target on the stock to $40 from $45. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), though, traders have been upping the bullish ante. Twitter Inc's 10-day call/put volume ratio of 3.39 outstrips 88% of comparable readings from the past year. An unwinding of these optimistic bets could result in headwinds. Out of the gate, TWTR is up 1.6% at $28.27. In other news, the company will meet today and could name co-founder and interim CEO Jack Dorsey its permanent chief.

  • Despite the company's better-than-expected second-quarter earnings, VRNT
    is down 4.3% at $49.43 -- and fresh off a new annual low of 48.28 -- due to mixed guidance. Further fanning the bearish flames is a round of price-target cuts from no fewer than four brokerage firms, with the deepest cut coming courtesy of Credit Suisse (to $60 from $70). This is a welcome development in options land, where bearish sentiment has been on the rise. In fact, Verint Systems Inc.'s 50-day ISE/CBOE/PHLX put/call volume ratio of 1.54 sits just 3 percentage points from a 12-month high. Mirroring this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.13 outstrips 99% of all comparable readings from the past year.

  • AMBA saw its rating cut to "market perform" at Barrington this morning, sending the shares 3.1% lower to $79.47. While the stock remains a long-term outperformer, it's recently hit a rough patch. In fact, Ambarella Inc is on track for its fourth straight daily loss -- during which it's lost a total of 17.5%. Not surprisingly, traders at the ISE, CBOE, and PHLX have been piling on the bearish bandwagon. AMBA's 10-day put/call volume ratio of 0.90 registers in the 79th percentile of its annual range. Further reflecting the Street's negative expectations, short interest accounts for 28.3% of the stock's float.

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!

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!