Analyst Downgrades: Twitter Inc, Eldorado Gold Corp (USA), and Alcoa Inc

Analysts downwardly revised their ratings and price targets on Twitter Inc (TWTR), Eldorado Gold Corp (USA) (EGO), and Alcoa Inc (AA)

Jan 12, 2016 at 10:03 AM
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Analysts are weighing in on microblogging concern Twitter Inc (NYSE:TWTR), mining interest Eldorado Gold Corp (USA) (NYSE:EGO), and metal manufacturer Alcoa Inc (NYSE:AA)Here's a quick roundup of today's bearish brokerage notes on TWTR, EGO, and AA.

  • TWTR is up 3.5% at $20.33 this morning, as broad-market tailwinds overshadow a price-target cut to $36 from $40 at UBS. Twitter Inc has been slumping on the charts since last April, and touched a record low of $19.26 just yesterday. The company has been working on changes to the user experience, including an option that extends entries to 10,000 characters, and the ability to watch Periscope videos directly from the Twitter app. Analysts have been fairly pessimistic lately, with 14 out of 23 giving the security a rating of "hold" or worse. But option traders continue snatching up calls, even as the shares struggle. TWTR has a 10-day call/put volume ratio of 3.57 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- indicating nearly four calls have been bought to open for each put over the last two weeks.
  • After halting plans to develop a mine in Greece, EGO was hit with price-target cuts from BMO, Credit Suisse, Raymond James, and Dundee. The shares were temporarily halted in early trading, and were last seen down 18.6% to $2.50 -- and just off a 10-year low of $2.38. Eldorado Gold Corp (USA) has been steadily sinking since hitting an all-time high in 2011, and five out of eight analysts providing coverage say the stock is a "hold" or "strong sell." But bearish traders have been backing off -- short interest on EGO fell by 31.6% during the last two reporting periods, and now accounts for just 0.7% of the equity's total available float.
  • AA is trading 4.1% lower at $7.67, after kicking off earnings season by reporting lackluster revenue. As a result, Sterne Agee, UBS, and Citigroup slashed their price targets to a tight range between $10 and $11. Alcoa Inc short sellers should be pleased with today's drop, as short interest on the security surged 27% during the last two reporting periods, to account for 10% of AA's available float. And at the ISE, CBOE, and PHLX, option traders have been favoring bearish bets more than usual, too. The stock's 50-day put/call volume ratio of 0.75 outranks 84% of comparable readings in the last 12 months.

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