Analyst Downgrades: Gigamon Inc, SunPower Corporation, and Weatherford International Plc

Analysts downwardly revised their ratings and price targets on Gigamon Inc (GMO), SunPower Corporation (SPWR), and Weatherford International Plc (WFT)

by Alex Eppstein

Published on Oct 5, 2016 at 9:58 AM

Analysts are weighing in on tech stock Gigamon Inc (NYSE:GIMO), solar firm SunPower Corporation (NASDAQ:SPWR), and oil services company Weatherford International Plc (NYSE:WFT). Here's a quick roundup of today's bearish brokerage notes on GIMO, SPWR, and WFT.

  • GIMO is getting hammered this morning, after Raymond James and D.A. Davidson downwardly revised their ratings to the equivalent of a "hold" -- though, the latter bumped its price target up to $59. At last check, the stock has shed 4.9% at $52.46, but has still nearly doubled in value on a year-to-date basis. Understandably, options traders have been buying to open calls over puts on Gigamon Inc. Specifically, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GIMO's 10-day call/put volume ratio sits at a top-heavy 4.32.
  • SPWR has jumped 2.8% to trade at $8.49, shrugging off a price-target cut to $9 from $11 at Deutsche Bank. It's been a pathetic 2016 for the shares, which started the year trading near $30, but have since sold off, succumbing to a number of negative drivers. Last month, in fact, the solar stock hit a three-year low of $7.37. Amid SunPower Corporation's technical woes, short selling has picked up. During the most recent reporting period, short interest popped over 7%, and now accounts for nearly two-fifths of SPWR's total float.
  • Citigroup trimmed its price target on WFT by $1 to $7, but the stock is 2.7% higher out of the gate, at $5.49. Longer term, the shares have underperformed badly, down more than 47% on a year-over-year basis. Plus, Weatherford International Plc recently got whacked after the firm agreed to a $140 million accounting fraud settlement. Despite the stock's technical troubles, call buying has been transpiring at a rapid-fire rate at the ISE, CBOE, and PHLX. Specifically, over the past two weeks, traders have scooped up nearly 15,800 calls compared to just 256 puts.
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