Analyst Downgrades: Walt Disney Co, Dillard's, Inc., and Archer Daniels Midland Company

Analysts downwardly revised their ratings and price targets on Walt Disney Co (NYSE:DIS), Dillard's, Inc. (NYSE:DDS), and Archer Daniels Midland Company (NYSE:ADM)

Josh Selway

Nov 11, 2016 at 10:11 AM

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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