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Analyst Downgrades: Integrated Device Technology Inc, Keryx Biopharmaceuticals, and Wendy's Co

Analysts downwardly revised their ratings and price targets on Integrated Device Technology Inc (IDTI), Keryx Biopharmaceuticals (KERX), and Wendy's Co (WEN)

Aug 2, 2016 at 9:39 AM
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Analysts are weighing in on semiconductor stock Integrated Device Technology Inc (NASDAQ:IDTI), drugmaker Keryx Biopharmaceuticals (NASDAQ:KERX), and burger joint Wendy's Co (NASDAQ:WEN). Here's a quick roundup of today's bearish brokerage notes on IDTI, KERX, and WEN.

  • IDTI has gapped 9.4% lower out of the gate at $20.11, as analysts reacted negatively to the company's in-line earnings. Specifically, no fewer than four brokerage firms cut their price targets on the stock, which is now on the short-sale restricted list. On a year-to-date basis, Integrated Device Technology Inc has surrendered more than one-quarter of its value, perhaps explaining why options traders have been buying fresh puts over calls at such a rapid rate. Specifically, IDTI's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 3.92 ranks just 9 percentage points from an annual high.
  • KERX's rating was lowered to the equivalent of a "hold" at Brean Capital, FBR, and Stifel, while JMP, Ladenburg Thalmann, and Raymond James cut their price targets. Out of the gate, the stock is down 9% at $4.30, following yesterday' post-earnings plunge of 36%. Keryx Biopharmaceuticals short sellers should be in celebration mode, considering the hefty portion of the equity's float that is sold short. And KERX could feel more pain should further brokerages lower their ratings -- at present, not a single analyst following the stock recommends selling the shares.
  • WEN saw its rating lowered to "sector perform" from "outperform" at RBC, which also trimmed its target price to $11 from $12. The negative note has dropped the stock 135% to $9.39, bringing its 2016 deficit to nearly 13%. That said, options traders appear to be keeping the faith in Wendy's Co. During the last two weeks at the ISE, CBOE, and PHLX, speculators have bought to open 31 calls for each put, and the corresponding call/put volume ratio rests in the high 83rd percentile of its annual range.
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