Analyst Downgrades: Twitter Inc, Peabody Energy Corporation, and Community Health Systems

Analysts downwardly revised their ratings and price targets on Twitter Inc (NYSE:TWTR), Peabody Energy Corporation (NYSE:BTU), and Community Health Systems (NYSE:CYH)

by Josh Selway

Published on Feb 16, 2016 at 10:22 AM
Updated on Feb 16, 2016 at 10:23 AM

Analysts are weighing in on social media stock Twitter Inc (NYSE:TWTR), energy concern Peabody Energy Corporation (NYSE:BTU), and healthcare stock Community Health Systems (NYSE:CYH). Here's a quick roundup of today's bearish brokerage notes on TWTR, BTU, and CYH.

  • Even though MKM Partners lowered its fair value estimate on the shares to $18 from $29, TWTR is enjoying an 0.8% post-Presidents Day jump to trade at $16.03 -- which shouldn't be too surprising. Longer term, though, Twitter Inc's given back almost 70% since its annual high of $53.49 back in April. However, if the shares can extend today's rally, they could benefit from an unwinding of pessimism in the options pits. Specifically, TWTR's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.72 is at an annual high. 
  • BTU has fallen in step with the broader energy sector, hitting an all-time low last week of $2.15. Today, the shares are down 4.1% at $2.33, following a downgrade to "underweight" from "hold" at BB&T. Short sellers are hoping this negative price action continues. For instance, short interest increased by 14.6% during the two most recent reporting periods. 
  • CYH has fallen 30.1% today to trade at $13.14 -- sending it straight to the short-sale-restricted list -- and earlier tagged a seven-year low of $12.88. Last night, the company announced an unexpected fourth-quarter loss -- prompting downgrades from Jefferies (to "hold") and Mizuho Securities (to "underperform"), with the former explaining it believes "investors will remain skeptical ... until CYH re-establishes a positive earnings track record." Today's bear gap has shares of Community Health Systems 80% below their all-time high of $65 from last June, and a recent batch of call buyers may be kicking themselves. Specifically, 10 long calls were purchased for every put during the past four weeks at the ISE, CBOE, and PHLX. 
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