Analyst Downgrades: QUALCOMM, Inc., Sarepta Therapeutics Inc, and Johnson & Johnson

Analysts downwardly revised their ratings and price targets on QUALCOMM, Inc. (NASDAQ:QCOM), Sarepta Therapeutics Inc (NASDAQ:SRPT), and Johnson & Johnson (NYSE:JNJ)

Dec 14, 2016 at 9:32 AM

Analysts are weighing in on digital communications stock QUALCOMM, Inc. (NASDAQ:QCOM), biotech Sarepta Therapeutics Inc (NASDAQ:SRPT), and drug giant Johnson & Johnson (NYSE:JNJ). Here's a quick roundup of today's bearish brokerage notes on QCOM, SRPT, and JNJ.

QCOM is down 0.6% at $68.92 this morning, following a downgrade to "neutral" from "overweight" at J.P. Morgan Securities. Regardless, the stock remains 36.8% higher on a year-to-date basis, while enjoying recent support from its rising 50-day moving average. While this technical setup is promising, short-term QUALCOMM, Inc. options traders are unusually put-skewed. Specifically, QCOM's Schaeffer's put/call open interest ratio (SOIR) of 1.15 sits just 2 percentage points from an annual high.
SRPT has surrendered 2.6% to trade at $31, pressured by a price-target cut to $32 from $46 at Jefferies. The stock has fallen off sharply since late-September, when it was exploring 14-year highs well north of $60. Amid the sell-off, Sarepta Therapeutics Inc appears to be vulnerable to additional bearish brokerage attention. Ten of 14 analysts tracking the stock rate it a "buy" or better, with not a single "sell" opinion on the books.

JNJ walked away from its merger talks with Swiss biotech Actelion, and subsequently received a price-target cut to $122 from $130 at J.P. Morgan Securities. Yet, shares of Johnson & Johnson are 0.1% higher out of the gate at $116, as they continue to bounce off their 320-day moving average. A capitulation among skeptical options players could fuel the stock's upward momentum. Specifically, JNJ's SOIR of 1.79 registers a mere 11 percentage points from an annual put-skewed peak.

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

Follow @Schaeffers

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.

👉 Sign up now to receive the next trade