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Analyst Downgrades: Delta Air Lines, Inc., Cyberark Software Ltd, and Dollar General Corp.

Analysts downwardly revised their ratings and price targets on Delta Air Lines, Inc. (NYSE:DAL), Cyberark Software Ltd (NASDAQ:CYBR), and Dollar General Corp. (NYSE:DG)

Aug 15, 2016 at 10:29 AM
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Analysts are weighing in on airline Delta Air Lines, Inc. (NYSE:DAL), tech stock Cyberark Software Ltd (NASDAQ:CYBR), and discount retailer Dollar General Corp. (NYSE:DG). Here's a quick roundup of today's bearish brokerage notes on DAL, CYBR, and DG.

  • DAL is down 0.4% at $36.19, after Cowen cut its third-quarter earnings-per-share view to $1.71 from $1.80, and lowered its full-year per-share profit forecast by a dime to $5.90, due to the financial impact from recent flight cancellations and delays. This negative price action is nothing new for the stock, which has shed 29% year-to-date. Should Delta Air Lines, Inc. continue to struggle on the charts, more bearish brokerage notes could be on the horizon -- which may create fresh headwinds for the shares. Currently, nine of 10 analysts maintain a "buy" or better rating, with not a single "sell" to be found. Separately, Omega Advisors said it increased its stake in DAL by 25% to 1.2 million shares.

  • Goldman Sachs removed CYBR from its "Americas buy list," and downgraded the equity to "neutral" from "buy," saying it sees "more opportunities in other security stocks over the next 12 months." However, the brokerage firm did say it believes Cyberark Software Ltd remains an intriguing M&A target, "given its technology leadership and success with driving share gains in this space." CYBR is down 2.5% at $51.64 today, but longer term, the shares are up 14.4% year-to-date, with recent pullbacks contained near the $51 level -- home to CYBR's June highs. Short sellers have been upping the bearish ante, however, with short interest up almost 22% in the two most recent reporting periods. Short interest now accounts for more than 9% of the stock's available float.

  • Unlike a pair of its fellow retail stocks, DG is lower in the wake of analyst attention. Specifically, the shares are down 0.7% at $92.22, following a downgrade to "hold" from "buy" and a price-target cut to $96 from $101 at Jefferies. More broadly speaking, DG has been a technical standout since bottoming at an annual low of $59.75 in mid-November, up 54%. Options traders, meanwhile, have been initiating long calls over puts at an accelerated clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Dollar General Corp.'s 10-day call/put volume ratio of 1.63 ranks in the 81st annual percentile.
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