Analysts downwardly revised their ratings and price targets on Walt Disney Co (DIS), Dillard's, Inc. (DDS), and Archer Daniels Midland Company (ADM)
Analysts are weighing in on Dow stock
Walt Disney Co (NYSE:DIS), retail name
Dillard's, Inc. (NYSE:DDS), and agricultural interest
Archer Daniels Midland Company (NYSE:ADM). Here's a quick roundup of today's bearish brokerage notes on DIS, DDS, and ADM.
- Despite somewhat downbeat quarterly results, DIS is up 2.4% at $97.25, after the company predicted "robust growth" in the years ahead. Meanwhile, Pivotal Research downgraded the stock to "hold" from "buy," and lowered its price target to $102 from $108, though Barclays upgraded Walt Disney Co to "equal weight" from "underweight," and RBC upped its price target to $101. DIS shares have fallen 16% in the past 12 months, but options traders have remained bullish. The stock's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 1.86, outranking 94% of the past year's readings.
- DDS has given back 6% to trade at $66.26 -- falling in line with this retail peer -- after the company's disappointing third-quarter earnings report. J.P. Morgan followed this up with a price-target cut to $55 from $59, not far from the stock's four-year low of $54.37, seen in May. Indeed, Dillard's, Inc. has fallen hard since hitting an all-time best above $144 back in April 2015, and short sellers are betting on extended losses. Almost 16% of the stock's total float is sold short, equating to more than two weeks' worth of pent-up buying power, going by average daily volumes.
- J.P. Morgan Securities also weighed in on ADM, lowering its opinion to "underweight" from "neutral," and cutting its price target by $6 to $36. The shares have since dropped 5.4% at $42.73, but remain comfortably above their 200-week moving average, which has provided support since May. Short-term options traders may be pleased with today's pullback, though. Archer Daniels Midland Company's Schaeffer's put/call open interest ratio (SOIR) of 1.14 ranks near the top quartile of its annual range.
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