Analyst Downgrades: Macy's, Freshpet, and US Steel

Analysts downwardly revised their ratings on Macy's, Inc. (NYSE:M), Freshpet Inc (NASDAQ:FRPT), and United States Steel Corporation (NYSE:X)

Josh Selway

Nov 12, 2015 at 9:29 AM

X
FRPT
M

Analysts are weighing in on retailer Macy's, Inc. (NYSE:M), pet food fanatic Freshpet Inc (NASDAQ:FRPT), and steel giant United States Steel Corporation (NYSE:X). Here's a quick roundup of today's bearish brokerage notes on M, FRPT, and X.

After getting slaughtered and hitting two-year lows following Wednesday's disappointing trip to the earnings confessional, M is down another 1% ahead of the open, as analysts keep piling on. Evercore ISI cut its opinion to "hold" from "buy," while no fewer than six price-target cuts have come down the pike since yesterday's close. At $40.44, Macy's, Inc. is now 38.5% lower in 2015, and could be in store for more losses as option traders unwind their positions. That is, M's Schaeffer's put/call open interest ratio (SOIR) sits at 0.57, lower than 92% of all readings from the past year. Said differently, call open interest significantly outweighs put open interest among options expiring in three months or less.

After revealing poor quarterly numbers and lowering its full-year outlook, FRPT is set to open 23.5% in the red, at a new all-time low. This would be nothing new for the shares, though; they've already lost more than half their value since their July debut, sitting at $8.37. Credit Suisse lowered its outlook on Freshpet Inc to "neutral" from "outperform," while more than halving its price target to $9 from $19. Five other brokerage firms also lowered their price targets on the stock, and the bearish attention might not stop there. Six of seven covering analysts still rate FRPT a "strong buy."

X is set to open 2.4% lower, after Barclays trimmed its price target to $15 from $14. The equity has been getting crushed recently, hitting an all-time low of $9.66 in early October, and closing at $10.12 on Wednesday. As such, it's not surprising to see elevated short interest on United States Steel Corporation. Almost 39% of the stock's float is sold short, accounting for over a week's worth of buying power, at the equity's normal daily volumes.

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!

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!