Analyst Downgrades: GrubHub Inc, VeriFone Systems Inc, and Qualcomm

Analysts downwardly revised their ratings on GrubHub Inc (GRUB), VeriFone Systems Inc (PAY), and QUALCOMM, Inc. (QCOM)

by Alex Eppstein

Published on Dec 16, 2015 at 9:29 AM

Analysts are weighing in on food ordering firm GrubHub Inc (NYSE:GRUB), electronic payments processor VeriFone Systems Inc (NYSE:PAY), and telecom concern QUALCOMM, Inc. (NASDAQ:QCOM)Here's a quick roundup of today's bearish brokerage notes on GRUB, PAY, and QCOM.

  • GRUB has lost one-third of its value in 2015 to trade at $24, and just touched a record low of $22.49 yesterday. That trend could continue today, with the stock down 2.1% in electronic trading, after Northland Capital downgraded its rating to "market perform" from "outperform." Meanwhile, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been rolling the dice on downside for GrubHub Inc. The stock's 10-day put/call volume ratio across these exchanges comes in at 3.50 -- just 2 percentage points from an annual peak.
  • PAY is up 0.3% pre-market, despite receiving a price-target cut at Jefferies (to $40) and Imperial Capital (to $32). Longer term, it's been a struggle for the shares, which yesterday panned an annual low of $24.52 before settling at $26.49. Option traders and short sellers alike are counting on downside for VeriFone Systems Inc. The stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.49 rests in the 84th percentile of its annual range. Likewise, PAY's short-interest ratio checks in at 5.10, meaning it would take over one week to buy back all of its shorted shares, at average daily volumes.
  • QCOM, which touched a five-year low of $45.93 on Monday, was hit with price-target cuts at Cowen and Company, Barclays, Credit Suisse, and Topeka Capital after the company said yesterday it will not break up. At the same time, however, Pacific Crest bumped its price target to $65 from $64. It's not hard to understand the skepticism swirling around QUALCOMM, Inc., as it's plummeted over 35% in 2015 to trade at $48.02. Things look markedly different in the options pits, however. Across the ISE, CBOE, and PHLX, traders have bought to open 5.26 QCOM calls for every put during the last two weeks, and the corresponding call/put volume ratio ranks in the 93rd percentile of its annual range.

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