Analyst Downgrades: United Technologies Corporation, Chico's FAS, Inc., and Garmin Ltd.

Analysts downwardly revised their ratings and price targets on United Technologies Corporation (NYSE:UTX), Chico's FAS, Inc. (NYSE:CHS), and Garmin Ltd. (NASDAQ:GRMN)

Josh Selway

Aug 22, 2016 at 10:05 AM

Analysts are weighing in on Dow stock United Technologies Corporation (NYSE:UTX), retailer Chico's FAS, Inc. (NYSE:CHS), and navigation expert Garmin Ltd. (NASDAQ:GRMN). Here's a quick roundup of today's bearish brokerage notes on UTX, CHS, and GRMN.

UTX is down 0.7% at $108.38, following a price-target cut to $106 from $109 at J.P. Morgan Securities. The stock is up 12.8% in 2016, though it's struggling to fill its bear gap from July 2015. Option traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) certainly seem optimistic. Specifically, 3.21 calls have been bought to open for each put during the past two weeks across these exchanges, with the resultant 10-day call/put volume ratio ranking in the high 81st percentile of United Technologies Corporation's annual range.

CHS is reacting to a price-target reduction to $11 from $12 at Deutsche Bank. The stock was last seen 1.3% lower at $11.71, putting its 12-month decline at 15%. This lackluster technical performance has earned Chico's FAS, Inc. plenty of skepticism from the brokerage bunch. Of the 15 analysts covering CHS, 10 of them say it's just a "hold."

GRMN has dipped 2.6% to $52.97, following a downgrade to "market perform" from "outperform" at Raymond James. The move is somewhat surprising, considering Garmin Ltd. is up 43% in 2016, after the company's impressive earnings report last month. Then again, this skepticism isn't confined to the brokerage bunch, despite the stock's strong showing on the charts. As one example, short interest represents over 9% of GRMN's float, equaling six days' worth of buying power, at normal trading volumes. If the stock can overcome today's drop, a short-squeeze situation is a strong possibility.

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

Follow @Schaeffers

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?