Q2 STOCKS TO BUY

3 Auto Stocks Bombarded by Bearish Brokerage Notes

Auto stocks Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), and Tesla Motors Inc (NASDAQ:TSLA) received price-target cuts overnight

Jun 29, 2016 at 9:10 AM
facebook X logo linkedin


Apparently, it's a bad day to be an auto stock. Several car manufacturers have seen their respective stocks get hit with negative analyst notes, including Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), and Tesla Motors Inc (NASDAQ:TSLA). Below, we'll take a closer look at the mounting pessimism within the auto sector.

F received a trio of price-target cuts at Evercore ISI (to $12), Deutsche Bank (to $14), and RBC (to $13). The negative attention isn't necessarily unwarranted, as the shares have surrendered 12% of their value on a year-to-date basis, closing Tuesday at $12.39. The options crowd is also pretty skeptical of Ford Motor Company. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 50-day put/call volume ratio of 0.75 -- in the bearishly skewed 79th annual percentile. However, ahead of the open, F shares are pointed 1% higher.

The same trio of brokerage firms weighed in on GM, with all three slashing their price targets to $32. Yet, in pre-market trading, the stock has picked up 0.8%. Last night, General Motors Company settled at $27.74, not far from its 2016 closing low of $26.90, touched in early February. As with Ford, options players think GM's technical prospects are dubious, buying to open 1.43 puts for every call during the last 10 sessions at the ISE, CBOE, and PHLX. The corresponding put/call volume ratio registers in the 85th percentile of its annual range, hinting at a stronger-than-usual appetite for bearish bets over bullish.

Finally, TSLA is up 1.4% pre-market, despite receiving a price-target reduction to $220 from $242 at RBC. This is just the latest negative note levied on the electric automaker, since it offered to buy SolarCity Corp (NASDAQ:SCTY). The stock has paid a steep price on the charts amid these developments, sinking 16.2% relative to its most recent high of $240.85 in early June, to park at $201.79. If short sellers have their druthers, Tesla Motors Inc will continue to sink. A lofty 27% of the stock's float is sold short, which would take more than six sessions to cover, at TSLA's usual daily trading volume.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter