Analyst Downgrades: Advanced Micro Devices, Inc., Apple Inc., and Humana Inc

Analysts downwardly revised their ratings and price targets on Advanced Micro Devices, Inc. (AMD), Apple Inc. (AAPL), and Humana Inc (HUM)

Jul 8, 2016 at 9:29 AM
facebook twitter linkedin

Analysts are weighing in on chipmaker Advanced Micro Devices, Inc. (NASDAQ:AMD), tech giant Apple Inc. (NASDAQ:AAPL), and healthcare stock Humana Inc (NYSE:HUM). Here's a quick roundup of today's bearish brokerage notes on AMD, AAPL, and HUM.

  • AMD is set to drop 4.6% at the open, after Bernstein lowered its rating on the stock to "underperform" from "market perform," with the analysts stating "we think eventual downside [second-quarter earnings] surprise is more likely than sustained upside." Advanced Micro Devices, Inc. closed at $5.02 Thursday, with a nearly 75% year-to-date lead. Despite the shares' surge up the charts in recent months, however, analysts don’t appear especially impressed. At the moment, 12 out of 19 brokerage firms call AMD a "hold" or worse, and the average 12-month price target of $4.06 sits at a 19% discount to the stock's current price. Traders aren’t too optimistic either -- while short interest fell by 8.4% during the last two-week reporting period, these bearish bets still account for roughly 13% of AMD's total float.

  • AAPL is 0.5% higher ahead of the bell, even after an analyst from Oppenheimer restated his cautious outlook (subscription required) for the company's fiscal third-quarter earnings report, due later this month. Apple Inc. is off more than 20% year-over-year, as of its Thursday close at $95.94, and the shares have spent most of the past few months in double-digit territory. Still, the majority of analysts have maintained an upbeat view of the stock, with 83% rating it a "buy" or better. That means the door is wide open for downgrades, particularly if AAPL's upcoming earnings are an echo of last quarter's dismal report, which led to a huge losing streak.

  • HUM is poised to give up 1.1% at the bell, after suffering its worst drop in nearly four years on Thursday, amid reports that the Department of Justice (DOJ) is exploring antitrust concerns related to the company's pending merger with Aetna Inc (NYSE:AET). Today, J.P. Morgan Securities reacted with a downgrade to "neutral" from "overweight," and lowered its price target on Humana Inc to $150 from $196. The stock closed at $162.74 Thursday, down nearly 9% in 2016, and options traders seem to be eyeing more losses. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 3.66 sits higher than 94% of all readings in the past year.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners