Analyst Downgrades: Ctrip.com International, Ltd., Outerwall Inc, and Seadrill Ltd

Analysts downwardly revised their ratings on Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Outerwall Inc (NASDAQ:OUTR), and Seadrill Ltd (NYSE:SDRL)

by Josh Selway

Published on Dec 8, 2015 at 10:02 AM
Updated on Dec 8, 2015 at 11:52 AM

Analysts are weighing in on online booking service Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Redbox parent Outerwall Inc (NASDAQ:OUTR), and offshore driller Seadrill Ltd (NYSE:SDRL)Here's a quick roundup of today's bearish brokerage notes on CTRP, OUTR, and SDRL.

  • CTRP is 2.6% lower this morning at $51.73, after HSBC cut its outlook to "hold" from "buy." On the other hand, the brokerage firm raised its price target to $55 from $54. This underperformance is rare for Ctrip.com International, Ltd., as it's more than doubled in value year-to-date, and has outperformed the S&P 500 Index (SPX) by over 53 percentage points during the past two months. Interestingly, short sellers have continued to pile on. Short interest surged by almost 35% over the past two reporting periods, and now represents over 13% of the stock's float. If CTRP can resume its long-term trend upward, a short-squeeze situation could ensue.
  • OUTR has taken a 20.1% hit to trade at $46.40, following a disappointing full-year outlook for its Redbox business, and news the DVD rental vendor's president, Mark Horak, is leaving the firm. As a result, four brokerage firms lowered their price targets for the stock, though B. Riley raised its opinion to "buy." The shares are now almost 46% below their all-time high of $85.26 from late July, and just panned a three-year low of $45. Option traders have been making their skepticism clear, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Outerwall Inc sports a 10-day put/call volume ratio of 2.08, which tops 78% of all readings from the past year. 
  • Sliding oil prices are weighing on SDRL big time, as the shares have lost 10.9% to trade at $4.35 -- and earlier touched a new all-time low of $4.29. Also hurting the stock is a note from Canaccord Genuity, which stated "the endgame is near," while lowering its price target by 97% to 1 NOK. Seadrill Ltd had already lost over half its value in 2015 before today's open, and analysts seem to be appropriately aligned, as 71% of covering brokerage firms deem SDRL a "hold" or "strong sell." 

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