Analyst Update: Transocean, Dreamworks, Amazon

Analysts adjusted their ratings and price targets on Transocean LTD (NYSE:RIG), Dreamworks Animation Skg Inc (NASDAQ:DWA), and Amazon.com, Inc. (NASDAQ:AMZN)

Jan 12, 2016 at 1:33 PM
facebook twitter linkedin


Analysts are weighing in today on offshore driller Transocean LTD (NYSE:RIG), entertainment stock Dreamworks Animation Skg Inc (NASDAQ:DWA), and e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN). Here's a quick roundup of today's brokerage notes on RIG, DWA, and AMZN.

  • It's no secret commodity stocks have been hurting, and RIG has been no exception. The shares have been consistently knocking out new lows recently, notching a new all-time bottom of $9.78 earlier. On top of sliding oil futures, Transocean LTD is being weighed down by a price-target cut to $11 from $13 at UBS. The stock was last seen down 4.2% at $9.91, and short sellers couldn't be happier. Almost 35% of RIG's float is sold short, which is the equivalent of nearly 12 days' worth of buying power, at normal daily volumes. 

  • DWA is going the other direction, with the shares picking up 4.6% at $25.55, following an upgrade to "outperform" at FBR. The stock is now trying to re-take its 20-day moving average, a level that guided the shares higher throughout December. Option traders are set to cash in if Dreamworks Animation Skg Inc does extend its rally. DWA's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at an astonishing 16.63 -- just 8 percentage points from an annual high

  • AMZN is also edging higher today, last seen up 0.3% at $619.95. The Street is apparently responding to a price-target hike at UBS to $750 from $700 -- representing all-time-high territory for the stock. After a brilliant 2015, Amazon.com, Inc. has swooned with the broader market this year, but option traders don't expect the losses to last. The stock's 10-day call/put volume ratio at the ISE, CBOE, and PHLX still shows call buying has an edge, coming in at 1.19 -- higher than nearly 70% of all other readings from the past 12 months.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Apple Inc., Intel Corporation, and The Coca-Cola Co and Analyst Downgrades: Twitter Inc, Eldorado Gold Corp (USA), and Alcoa Inc.
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners