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)

Jul 22, 2016 at 10:08 AM
facebook twitter linkedin

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.
Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners