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
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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.
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