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

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

Dec 8, 2015 at 10:02 AM
facebook twitter linkedin

Analysts are weighing in on online booking service 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 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." 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners