Analyst Downgrades: Smith & Wesson Holding Corp, SolarCity Corp, and BlackBerry Ltd

Analysts downwardly revised their ratings and price targets on Smith & Wesson Holding Corp (SWHC), SolarCity Corp (SCTY), and BlackBerry Ltd (BBRY)

Apr 4, 2016 at 10:08 AM
facebook X logo linkedin


Analysts are weighing in on firearms maker Smith & Wesson Holding Corp (NASDAQ:SWHC), alternative energy stock SolarCity Corp (NASDAQ:SCTY), and phone maker BlackBerry Ltd (NASDAQ:BBRY). Here's a quick roundup of today's bearish brokerage notes on SWHC, SCTY, and BBRY.

  • Cowen and Company downgraded SWHC to "market perform" from "outperform" this morning, sending the shares down 14.8% to $23.64. In its note, the brokerage firm cited potentially tougher background checks for gun buyers. Smith & Wesson Holding Corp recently pulled back from a record high of $30.44, seen March 18, after moving steadily higher for more than a year on support from its 120-day moving average. But in the option pits, it appears traders are targeting further downside. At the International Securities Exchange (ISE) Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open nearly three SWHC puts for each call during the past 10 sessions, with the resulting 10-day put/call volume ratio of 2.69 landing in the 97th percentile of its annual range.
  • SCTY is up 3.3% at $25.08, despite a price-target cut to $56 from $65 at Stifel. SolarCity Corp announced this morning that it closed a renewable energy certificate transaction that will provide funding of up to $40 million. Analysts have been mostly in SCTY's corner, maintaining 11 "buy" or better ratings, compared to just four "holds." Plus, option traders continue to make bullish bets. As such, an unwinding of this optimism toward the underperformer -- SCTY is down more than 50% year-to-date -- could put pressure on the shares.
  • RBC began coverage on BBRY with a "sector perform" rating and set an $8 price target this morning, while Deutsche Bank cut its price-target on the stock to $6.50 from $7 -- a discount to the shares' current value of $7.21, down 3.6% from Friday's close. A drop in quarterly revenue weighed on BlackBerry Ltd at the end of the week, but while option traders are still buying BBRY calls over puts at an unusually high rate, short interest on the stock is running high. Specifically, more than 14% of BBRY's available float is tied up in these bearish bets, accounting for nearly three full weeks of trading, at the stock's average daily volume.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI