Analyst Update: Seagate, 3D Systems, Patterson-UTI Energy

Analysts revised their ratings and price targets on Seagate Technology PLC (NASDAQ:STX), 3D Systems Corporation (NYSE:DDD), and Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Apr 15, 2016 at 2:11 PM
facebook twitter linkedin


Analysts are weighing in on data storage specialist Seagate Technology PLC (NASDAQ:STX), 3-D printing firm 3D Systems Corporation (NYSE:DDD), and energy stock Patterson-UTI Energy, Inc. (NASDAQ:PTEN). Here's a quick roundup of today's brokerage notes on STX, DDD, and PTEN.

  • STX is off 4.9% at $25.76, after Argus downgraded the stock to "hold" from "buy." Today's decline has the shares down 22.4% week-to-date -- thanks to a dismal forecast -- and on track to log the worst weekly performance of any S&P 500 Index (SPX) stock. Longer term, STX has surrendered more than half of its value year-over-year. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), meanwhile, Seagate Technology PLC's 10-day put/call volume ratio of 1.31 ranks in the 71st annual percentile. In other words, puts have been bought to open over calls at a faster-than-usual clip.

  • Yesterday, DDD surged 10% on a strong outlook from BofA-Merrill Lynch. Today, the shares have plunged 7% to $17, after Citigroup -- which also chimed in on one of DDD's sector peers -- lowered its rating to "sell" (while boosting its price target to $15 from $10). Specifically, the brokerage firm said a possible takeover by HP Inc (NYSE:HPQ) seems "highly unlikely," and that optimism over the firm's new CEO is already priced in the shares. In fact, year-to-date, shares of 3D Systems Corporation have roughly doubled, yet short-term speculators have shown a distinct preference for puts over calls. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.96 sits just 2 percentage points from a 52-week peak.

  • J.P. Morgan Securities cut its rating on PTEN to "underweight" from "neutral," sending the shares down 4.1% to $17.50. Additionally, skepticism ahead of a big meeting of global oil producers is weighing on energy stocks -- overshadowing a report from Baker Hughes Incorporated (NYSE:BHI) that showed domestic rig counts dropped for a fourth straight week, and are currently at their lowest level since November 2009. Today's negative price action runs counter to PTEN's longer-term trajectory, though, with the stock up 60% from its Jan. 20 six-year low of $10.94. Should the stock resume its uptrend, short sellers could start to jump ship. Short interest accounts for 14.4% of Patterson-UTI Energy, Inc.'s available float, or more than a week's worth of pent-up buying demand, at the average pace of trading.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Alibaba Group Holding Ltd, JetBlue Airways Corporation, and Micron Technology, Inc. and Analyst Downgrades: American Airlines Group Inc, SeaWorld Entertainment Inc, and Stratasys, Ltd.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners