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Analyst Downgrades: Ambarella Inc, Ford Motor Company, and Nimble Storage Inc

Analysts downwardly revised their ratings and price targets on Ambarella Inc (AMBA), Ford Motor Company (F), and Nimble Storage Inc (NMBL)

Mar 4, 2016 at 9:49 AM
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Analysts are weighing in on semiconductor stock Ambarella Inc (NASDAQ:AMBA), automaker Ford Motor Company (NYSE:F), and data storage specialist Nimble Storage Inc (NYSE:NMBL). Here's a quick roundup of today's bearish brokerage notes on AMBA, F, and NMBL.

  • AMBA has plunged 8.7% this morning to trade at $42.20, as the company's dreary current-quarter revenue forecast overshadows better-than-expected fourth-quarter earnings and sales. Throwing salt into the stock's wounds, Dougherty lowered its rating to "neutral" from "buy," and no fewer than five other analysts cut their price targets. Ambarella Inc is no stranger to sharp losses, shedding more than two-thirds of its value since its record high of $129.19 in late July. Short sellers are counting on even more pain for the shares, too. A lofty 38.8% of AMBA's float is sold short, representing almost nine days' worth of trading activity, at average volumes.
  • F is down 0.1% at $13.53, after seeing its price target reduced to $14 from $16 at Susquehanna. Since flirting with the $11 level from early-to-mid February, the stock has been rising fast. However, Ford Motor Company is now testing its 120-day moving average, which hasn't been toppled on a closing basis since early December. Switching gears, short-term option traders are extremely put-skewed toward F, based on its Schaeffer's put/call open interest ratio (SOIR) of 1.28 -- an annual high.
  • NMBL is getting battered out of the gate, down 17.6% at $6.80 on the heels of a disappointing current-quarter earnings forecast -- though the company's fourth-quarter loss was in line with estimates. The brokerage crowd is apparently not too pleased with the news. Piper Jaffray reduced its rating to "neutral" from "overweight" and slashed its price target to $9 from $20, while at least three other analysts also cut their price targets. With this morning's gap lower, Nimble Storage Inc is now sitting on a 26% year-to-date deficit. Meanwhile, option traders have been rolling the dice on extended losses for the stock. NMBL's 50-day put/call volume ratio of 0.12 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the high 81st percentile of its annual range.
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