Analyst Downgrades: Chipotle Mexican Grill, Inc., Skyworks Solutions Inc, and Skechers USA Inc

Analysts downwardly revised their ratings and price targets on Chipotle Mexican Grill, Inc. (NYSE:CMG), Skyworks Solutions Inc (NASDAQ:SWKS), and Skechers USA Inc (NYSE:SKX)

Karee Venema
Jul 22, 2016 at 10:08 AM
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Analysts are weighing in on burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG), semiconductor stock Skyworks Solutions Inc (NASDAQ:SWKS), and footwear specialist Skechers USA Inc (NYSE:SKX). Here's a quick roundup of today's bearish brokerage notes on CMG, SWKS, and SKX.

  • CMG's second-quarter earnings fell short of analyst estimates, as last year's string of food-borne illnesses continue to haunt the quick-service restaurant chain. The quarterly miss was enough to prompt price-target cuts at Jefferies (to $330), Barclays (to $395), and Nomura (to $405). Despite this dismal backdrop, shares of Chipotle Mexican Grill, Inc. are up 0.2% at $419.12, though their year-over-year deficit still stands at 42%. While there's no shortage of skeptics circling CMG, short-term options traders are more call-heavy than usual. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.96 rests lower than 66% of all comparable readings taken in the past year.

  • SWKS is down 8.8% at $64.69, as a round of price-target cuts overshadows the company's stronger-than-forecast fiscal third-quarter earnings and a price-target hike to $73 from $70 at CLSA. Included in the bunch of downbeat analyst notes was one from BMO, which lowered its price target to $65 from $69. Although the vast majority of analysts maintain a "buy" or better rating toward Skyworks Solutions Inc, the stock has been in the bearish crosshairs of late. Should the shares extend their downward trajectory -- SWKS stock is off 37% year-over-year -- another round of bearish brokerage notes could be on the horizon.

  • SKX has plunged 22% to trade at $25.16 -- and is on the short-sale restricted list -- as the firm's second-quarter earnings took a hit from "challenges in the domestic retail space." Today's negative price action is just more of the same for a stock that's surrendered nearly 39% over the past 12 months, and earlier panned an annual low of $24.16. Nevertheless, options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open calls over puts at a faster-than-usual clip of late, per Skechers USA Inc's 10-day call/put volume ratio of 4.18 -- in the 92nd annual percentile.
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