Analysts downwardly revised their ratings on United Parcel Service, Inc. (UPS), Knight Transportation (KNX), and Intercept Pharmaceuticals Inc (ICPT)
Analysts are weighing in on delivery giant United Parcel Service, Inc. (NYSE:UPS), trucking issue Knight Transportation (NYSE:KNX), and drugmaker Intercept Pharmaceuticals Inc (NASDAQ:ICPT). Here's a quick roundup of today's bearish brokerage notes on UPS, KNX, and ICPT.
- UPS is 1.4% lower this morning at $98.60, following a price-target cut to $105 from $111 at Baird. This puts the shares more than 11% lower year-to-date, and back into double-digit territory -- which could be bad news for at least one trader. The majority of analysts have made their skepticism toward United Parcel Service, Inc. clear; 11 of 17 brokerage firms say the stock is just a "hold." Elsewhere, short interest is also elevated, as it would take bears over six sessions to cover their positions, going by average daily volumes.
- KNX has dropped 6.3% out of the gate to his $22.96, after the company lowered its fourth-quarter earnings outlook (subscription required). The shares have been stair-stepping lower since the start of the year, and have now given back almost one-third of their value in 2015. Downgrades on the Street are also pressuring Knight Transportation, with Citigroup cutting its opinion to "neutral" from "buy." The brokerage firm was also one of four to lower its price target, setting the bar at $25, revised down from $29. In light of this, a recent batch of short sellers is likely cheering. Specifically, short interest surged by roughly 42% over the past two reporting periods, and now accounts for 11.5% of KNX's float -- or 7.4 sessions' worth of buying power, at typical daily volumes.
- ICPT has slid 4.8% this morning to $157.87, after the Food and Drug Administration (FDA) postponed its decision on the firm's primary liver disease drug. To make matters worse, JMP Securities trimmed its price target to $348 from $351. With the bear gap, the equity is now clinging to a slim year-to-date lead, and option traders are probably hoping it can regain its upward momentum. Intercept Pharmaceuticals Inc sports 50-day call/put volume ratio of 2.71 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which tops 87% of readings from the past 12 months. In short, call buying has been more popular than normal of late, relative to put buying.