Analyst Update: AMC Networks Inc, Paypal Holdings Inc, and Atara Biotherapeutics Inc

Analysts are weighing in on AMC Networks Inc (NASDAQ:AMCX), Paypal Holdings Inc (NASDAQ:PYPL), and Atara Biotherapeutics Inc (NASDAQ:ATRA)

Sep 15, 2016 at 3:11 PM
facebook twitter linkedin

Analysts are weighing in on entertainment stock AMC Networks Inc (NASDAQ:AMCX), online payment services Paypal Holdings Inc (NASDAQ:PYPL), and biotech Atara Biotherapeutics Inc (NASDAQ:ATRA). Here's a quick roundup of today's brokerage notes on AMCX, PYPL, and ATRA.

  • AMCX is down 3% at $50.41 -- earlier hitting a new three-year low of $49.93 -- following a downgrade to "hold" from "buy" from Stifel, who also slashed the entertainment company's price target to $60 from $70. Stifel analyst Benjamin Mogil cited weak ratings for AMCX's "Fear the Walking Dead," and increasing sector competition that could affect 2017 advertising revenue. AMCX has been on a steady trajectory downward, with the shares dropping over 32% so far in 2016, and with rebound attempts running into resistance at AMCX's 10-week moving average. There's likely some option traders kicking rocks on today's move, with AMC Network Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.68 sitting in the lower quartile of its annual range, suggesting short-term option players have been unusually call-skewed as of late. 

  • PYPL is up 2.6% at $41 -- within a chip-shot of a new record high -- after Craig-Hallum started coverage on the online payment processor with a "buy" rating. Craig-Hallum analyst Bradley Berning said the threat posed to PYPL's market share by Apple Inc.'s  (NASDAQ:AAPL) Apple Pay feature is overstated, and that Paypal  Holdings Inc could see its market share increase over the next several years. PYPL is currently up over 21% year-over-year, but has struggled to overtake the $41-$42 area on several occasions in 2016. Among option buyers, puts have been unusually popular, with PYPL's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.99 sitting in the 92nd percentile of its annual range.

  • ATRA is one of many biotechs on the move, down 9.5% at $19.30, after Goldman Sachs cut its rating to "sell" from "neutral" and issued a price-target cut to $16 from $23. Atara Biotherapeutics Inc shares have had a tough go of it for the last 12 months, dropping by over 57% year-over-year, although the stock seems to have found possible support around the $19 level -- home to its 160-day moving average. ATRA's short interest is up by over 4.4% over the last reporting period, now accounting for a lofty 23.4% of ATRA's float -- an amount that would take traders nearly five weeks to cover, at ATRA's average daily volume. Today, however, ATRA is on the short-sale restricted list.
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!



Special Offers from Schaeffer's Trading Partners