Analyst Downgrades: FireEye Inc, Marvell Technology Group Ltd., and Merck & Co., Inc.

Analysts downwardly revised their ratings on FireEye Inc (NASDAQ:FEYE), Marvell Technology Group Ltd. (NASDAQ:MRVL), and Merck & Co., Inc. (NYSE:MRK)

by Josh Selway

Published on Oct 12, 2015 at 9:45 AM
Updated on Oct 12, 2015 at 11:15 AM

Analysts are weighing in on security focus FireEye Inc (NASDAQ:FEYE), semiconductor firm Marvell Technology Group Ltd. (NASDAQ:MRVL), and healthcare behemoth Merck & Co., Inc. (NYSE:MRK). Here's a quick roundup of today's bearish brokerage notes on FEYE, MRVL, and MRK.

  • FEYE is shrugging off a price-target cut to $41 from $63 at Wedbush, with the shares slightly higher at $31.91 this morning. As such, the stock still boasts a roughly 22% lead year-over-year, but don't tell that to option bears. FireEye Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio now stands at 0.76, putting it above 94% of all comparable readings from the past 12 months. This means put buying has been more popular than normal in recent weeks. If FEYE can sustain its long-term technical success, it could benefit from a quick exit from these skeptics 

  • MRVL has underperformed the S&P 500 Index (SPX) by roughly 22 percentage points in the past three months, with its 32-day trendline applying overhead pressure. The stock is lower again today, dropping 2.8% to $9.15, after Normura reduced its outlook to "neutral" from "buy," and lowered its price target to $12 from $14. Although most analysts are in the bears' corner -- 19 of 23 saying the equity is a "hold" or worse -- option traders have kept the faith. By the numbers, more than 800 Marvell Technology Group Ltd. calls have been purchased during the past two weeks, compared to just 21 puts. 

  • A price-target cut to $53 at Jefferies has MRK 2.7% lower this morning at $49.60. The shares had already shed 10.3% year-to-date coming into today, and short sellers have taken note. Short interest on Merck & Co., Inc. has risen by almost one-third over the two most recent reporting periods. These shorted shares now account for more than three days' worth of buying power, at MRK's average pace of trading. 
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