Analyst Downgrades: Community Health Systems, On Deck Capital Inc, and ACADIA Pharmaceuticals Inc.

Analysts downwardly revised their ratings and price targets on Community Health Systems (NYSE:CYH), On Deck Capital Inc (NYSE:ONDK), and ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)

by Josh Selway

Published on May 3, 2016 at 9:13 AM

Analysts are weighing in on hospital operator Community Health Systems (NYSE:CYH), small business lender On Deck Capital Inc (NYSE:ONDK), and biotech stock ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). Here's a quick roundup of today's bearish brokerage notes on CYH, ONDK, and ACAD.

  • Wedbush and Jefferies trimmed their price targets on CYH to $16 and $15, respectively, following the company's first-quarter earnings miss. The stock, which is already down 64.2% in the past 12 months at $15.74, is now pointed 11% lower ahead of the open. It's not surprising, then, that pessimism surrounds Community Health Systems on Wall Street. And options traders have been betting on more losses, as the stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 1.42, ranking in the bearishly skewed 93rd annual percentile. 
  • ONDK has declined over 39% in pre-market trading, putting it on pace to open at an all-time low, following the company's disappointing first-quarter earnings report. Brokerage firms were quick to swoop in, with BTIG, Canaccord Genuity, and FBR all lowering their rating to the equivalent of a "hold," and a total of four brokerages cutting their price targets. The stock has moved steadily lower since opening for public trading at $26.50 at the end of 2014, closing Monday at $8.30. More pain could be in store for On Deck Capital Inc, considering it's vulnerable for additional analyst downgrades. Specifically, eight of the 14 analysts covering ONDK say it's at least a "buy," without a single "sell" rating to be found. 
  • A day after a key development on the drug frontACAD was hit with a downgrade to "market perform" from "outperform" at Leerink, which also cut its price target to $35 from $40. Leerink becomes the first brokerage firm to issue anything other than a "strong buy" rating on ACADIA Pharmaceuticals Inc., sending the shares 4% lower in pre-market trading. At its Monday close of $33, ACAD was within striking distance of its year-to-date breakeven mark, but considering one-fourth of the stock's float is sold short, a move away from this level isn't bad news for everyone. 
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