Analyst Downgrades: Alexion Pharmaceuticals, Inc., WPX Energy Inc, and Godaddy Inc

Analysts downwardly revised their ratings and price targets on Alexion Pharmaceuticals, Inc. (ALXN), WPX Energy Inc (WPX), and Godaddy Inc (GDDY)

Jun 7, 2016 at 11:28 AM
facebook X logo linkedin

Analysts are weighing in on biopharmaceutical stock Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), oil-and-gas stock WPX Energy Inc (NYSE:WPX), and domain marketplace Godaddy Inc (NYSE:GDDY). Here's a quick roundup of today's bearish brokerage notes on ALXN, WPX, and GDDY.

  • ALXN is among the biotech stocks taking it on the chin today, down 11.5% at $137.11 -- on pace for its worst day in six years -- after its medication, Soliris, failed to meet goals during final-stage trials. Following the announcement, ALXN was hit with a slew of price-target cuts from no fewer than nine different brokerage firms, and the stock is now down 28% for the year. Alexion Pharmaceuticals, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 0.7 sits lower than 90% of all other readings from the past year, showing that near-term options players have rarely been more call-biased in the past 12 months. Analysts still haven't completely thrown ALXN to the wolves, either, as there isn't a single "sell" rating on the stock. An exodus of options bulls or additional negative analyst notes could exacerbate selling pressure on ALXN.

  • WPX shares are trading at $10.75, down 1.7%, but earlier tagged a year-to-date high of $11.18. Wunderlich cut its price target to $12 from $13, even though the company yesterday raised its full-year oil production guidance by 5%, and announced that it would be offering 49.5 million shares of common stock for sale to provide additional revenue and funding. WPX Energy Inc is still up 88% year-to-date, and has outperformed the S&P 500 Index (SPX) by 71.4 percentage points over the last 60 sessions. As such, WPX sports a 14-day Relative Strength Index (RSI) of 70 -- on the cusp of "overbought" territory, suggesting today's breather may have been in the cards. However, not everyone has bought in; 15% of WPX's float is currently sold short, up 14.1% over the last reporting period.

  • GDDY is down 3.2% at $31.91, after Citigroup cut its rating to "neutral" from "buy," just one day ahead of Godaddy Inc's annual shareholders meeting, and a week after Chief Marketing Officer Philip Bienert resigned. GDDY is now down 0.4% in 2016, and is facing familiar resistance in the overhead $33-$34 region. Wall Street seems skeptical, as the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 6.2 sits higher than 88% of all other readings from the past 12 months, indicating a bigger-than-usual bearish bias among options traders. Short interest in the stock has risen 42% over the past two reporting periods, and 5.6% of the stock's float is currently short sold -- an amount that would take over a week of trading, at GDDY's average daily volume, to cover.
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