Analyst Downgrades: Apple Inc., HP Inc, and Macy's, Inc.

Analysts downwardly revised their ratings and price targets on Apple Inc. (AAPL), HP Inc (HPQ), and Macy's, Inc. (M)

by Kirra Fedyszyn

Published on Jan 7, 2016 at 9:27 AM

Analysts are weighing in on tech giants Apple Inc. (NASDAQ:AAPL) and HP Inc (NYSE:HPQ), as well as retailer Macy's, Inc. (NYSE:M)Here's a quick roundup of today's bearish brokerage notes on AAPL, HPQ, and M.

  • AAPL is pointed lower again today, set to open down 1.7% from its Wednesday close of $100.70, with help from a price-target cut to $130 from $140 at RBC. If Apple Inc. has already dropped 4.3% in 2016, and could be on track to close below the century mark for the first time since October 2014. The stock has been slumping for months under reports of lower sales and production of iPhones, bringing many of AAPL's suppliers down with it. And near-term options traders are more put-heavy than usual. AAPL has a Schaeffer's put/call open interest ratio (SOIR) of 0.89 -- a reading in the 96th percentile for the past year.
  • A downgrade to "market perform" from "outperform" at Wells Fargo has HPQ headed 2.6% lower, after closing at $11.29 on Wednesday, not far off a two-year low of $11.03, touched in late September. The brokerage firm cited a "lack of material catalysts in FY16," and said it believes "more material growth is unlikely until FY17." The shares have been trending lower over the past year, and analysts are generally bearish, with 12 out of 20 giving HPQ a "hold" rating or worse. Option traders clearly agree. The stock has racked up a 10-day put/call volume ratio of 2.15 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than 96% of all readings from the past year. 
  • After spending the last six months in a nosedive, M is pointed 1.1% higher, after announcing Wednesday evening that it would close stores and cut thousands of jobs in an effort save $400 million in annual costs, following a disappointing holiday quarter. The company also cut its 2015 earnings forecast for the second time. The news earned Macy's, Inc. price-target cuts from Nomura, Sterne Agee CRT, UBS, and Citigroup, to a range between $38 and $50 -- compared to Wednesday's close of $36.15, which is just north of a three-year low of $34.05, touched just over two weeks ago. Option traders have remained remarkably bullish on the stock, though. At the ISE, CBOE, and PHLX, M has a 10-day call/put volume ratio of 5.95 -- showing nearly six calls bought for each put over the last two weeks -- a reading in the 94th annual percentile. Should the bulls begin to abandon hope, the shares could be on their way to new lows.

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