Analyst Downgrades: Twitter Inc, Square Inc, and Bank of America Corp

Analysts downwardly revised their ratings and price targets on Twitter Inc (NYSE:TWTR), Square Inc (NYSE:SQ), and Bank of America Corp (NYSE:BAC)

May 16, 2016 at 9:55 AM
facebook X logo linkedin

Analysts are weighing in on Jack Dorsey stocks Twitter Inc (NYSE:TWTR) and Square Inc (NYSE:SQ), as well as financial firm Bank of America Corp (NYSE:BAC). Here's a quick roundup of today's bearish brokerage notes on TWTR, SQ, and BAC.

  • MKM Partners slashed its price target on TWTR to $14 to $18. Nevertheless, the shares are up 0.9% at $14.23. This positive price action runs counter to TWTR stock's longer-term trajectory, though, with the security down almost 62% year-over-year -- and fresh off a May 3 all-time low of $13.90. Options traders have kept the faith, however, and those currently purchasing the stock's near-term contracts are getting a quite a deal. Specifically, Twitter Inc's Schaeffer's Volatility Index (SVI) of 47% rests lower than 87% of all comparable readings taken in the past year, meaning premium on TWTR's short-term options is pricing in relatively low volatility expectations at the moment.

  • SQ saw its price target lowered to $8 from $9 at Wedbush, but the shares have managed a 1.6% gain at $9.51. Longer term, the stock has had a dismal run, and -- even with last Friday's dead-cat bounce -- remains off 27.4% year-to-date. Options traders have shown a distinct preference for long calls over puts, though. At the International Securities Exchange (ISE), Chicago Board Options (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, speculative players have bought to open 1.89 calls on Square Inc for every put over the past 20 sessions.

  • KBW downgraded BAC to "market perform" from "outperform" and lowered its price target to $16 from $17. While the stock is up 0.6% in early trading at $13.96, its longer-term technical troubles helped one option bear win big last week. In fact, in 2016 alone, the shares of Bank of America Corp have surrendered 17%. Another round of bearish brokerage notes could put even more pressure on BAC, considering roughly four-fifths of those covering the shares maintain a "buy" or better rating. Plus, the average 12-month price target of $17.43 stands at a stiff 25% premium to current trading levels.
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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI