Schaeffer's Top Stock Picks for '25

Analyst Downgrades: Ambarella Inc, NRG Energy Inc, and Zumiez Inc.

Analysts downwardly revised their ratings on Ambarella Inc (AMBA), NRG Energy Inc (NRG), and Zumiez Inc. (ZUMZ)

Dec 1, 2015 at 9:48 AM
facebook X logo linkedin


Analysts are weighing in on semiconductor maker Ambarella Inc (NASDAQ:AMBA), power company NRG Energy Inc (NYSE:NRG), and apparel peddler Zumiez Inc. (NASDAQ:ZUMZ). Here's a quick roundup of today's bearish brokerage notes on AMBA, NRG, and ZUMZ.

  • Deutsche Bank cut its price target on AMBA to $70 from $85. The downward revision is well-deserved, as the stock has fallen hard since touching a record high of $129.19 in late July, though it was last seen 2.7% higher at $64.53. On the fundamental front, Ambarella Inc will report third-quarter earnings on Thursday evening. Ahead of the event, short sellers have been upping the bearish ante. During the most recent two-week reporting period, short interest on AMBA rose 6.2%, and now represents 45.8% of the stock's total float. At typical trading levels, it would take over one week to buy back these positions.
  • NRG has lost over half its value on a year-to-date basis, and touched a record low of $11.51 yesterday. At last check, the stock is flat at $12.36, even though Citigroup initiated coverage with a "sell" rating and an $11 price target. Speaking more generally, though, the brokerage crowd has taken a sunny-side-up approach toward NRG Energy Inc. Eighty percent of covering analysts have handed out "buy" or better opinions, and the security's consensus 12-month price target of $23.31 sits at a nearly 90% premium to current levels.
  • ZUMZ, which is slated to report earnings Thursday night, is off 1.1% this morning at $14.93, following a downgrade to "market perform" at William Blair. This is business as usual for a stock that had given up three-fifths of its value year-to-date heading into today's session. Amid this long-term swoon, short sellers have been active. Nearly 20% of Zumiez Inc.'s float is sold short, representing two weeks' worth of trading activity, given typical volumes. Also, short-term traders have shown a distinct preference toward puts over calls. ZUMZ's Schaeffer's put/call open interest ratio (SOIR) of 1.07 ranks in the 79th percentile of its annual range.
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?