Analyst Downgrades: Dunkin', Wynn Resorts, Limited

Analysts downwardly revised their ratings on Dunkin Brands Group Inc (NASDAQ:DNKN), Wynn Resorts, Limited (NASDAQ:WYNN), and Yum! Brands, Inc. (NYSE:YUM)

Oct 16, 2015 at 10:03 AM
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Analysts are weighing in on doughnut titan Dunkin Brands Group Inc (NASDAQ:DNKN), casino stock Wynn Resorts, Limited (NASDAQ:WYNN), and fast-food restaurant operator Yum! Brands, Inc. (NYSE:YUM). Here's a quick roundup of today's bearish brokerage notes on DNKN, WYNN, and YUM.

  • It's been a tough couple weeks for DNKN, and it doesn't look like things are going to turn around any time soon. The breakfast chain got hit with an $11 price-target cut to $43 at Wedbush, and is now 0.4% lower at $42. Speculators are hoping the stock's struggles persist. Dunkin Brands Group Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 4.02 stands at an annual high. So, not only have four puts been bought to open for every call during the past two weeks, but this pace marks the healthiest appetite for puts over calls at any point in the past 12 months. Looking ahead, DNKN will report third-quarter earnings next Thursday morning.

  • WYNN is losing big this morning, sliding 8.8% to $67.25, after the company announced disappointing third-quarter results. Furthermore, the firm revealed particularly weak numbers from its Macau operations. Wall Street is now weighing in, with Barclays, Janney, and Susquehanna lowering their respective price targets to $62, $65, and $67. The shares had already shed roughly half their value in 2015 coming into today, and the fresh wave of bearish traders are hoping for additional losses. Specifically, short interest increased by roughly 27% during the two most recent reporting periods. As it stands now, close to 17% of Wynn Resorts, Limited's float is controlled by short sellers. 

  • YUM has also been struggling on the charts, after the company last week announced lackluster quarterly results. However, even though the firm last night lowered its full-year earnings outlook and warned of slowing sales in China, traders are responding positively to the news that activist investor Keith Meister has joined the company's board. Meister earlier this year laid out a plan to break up the company. Yum! Brands, Inc. was last seen 1.7% higher at $70.42, despite J.P. Morgan Securities cutting its price target to $80 from $87. Shifting gears, call open interest outweighs put open interest on the stock, at least among options set to expire in three months or less. This is evidenced by YUM's Schaeffer's put/call volume ratio (SOIR) of 0.68, which sits in the middling 51st annual percentile. 
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