Analysts downwardly revised their ratings and price targets on REGN, GPRO, and SHAK
Analysts are weighing in on biotech
Regeneron Pharmaceuticals Inc (NASDAQ:REGN), tech stock
GoPro Inc (NASDAQ:GPRO), and burger joint
Shake Shack Inc (NYSE:SHAK). Here's a quick roundup of today's bearish brokerage notes on REGN, GPRO, and SHAK.
- REGN is down 6.4% at $356.46, after a U.S. judge banned the sales of Praluent, a cholesterol drug sold by Regeneron Pharmaceuticals Inc and Sanofi SA (ADR) (NYSE:SNY), citing infringement on patents owned by Amgen, Inc. (NASDAQ:AMGN). While Regeneron and Sanofi said they would appeal, REGN stock was hit with price-target cuts from Baird, SunTrust Robinson, and RBC Capital -- to $369, $375, and $598, respectively. REGN shares are down 21.3% since their mid-November highs, though in the option pits, speculators have been buying to open calls over puts at a faster-than-usual clip. REGN's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.66 sits higher than 74% of all other readings taken in the last year.
- GPRO is down 3.4% at $9.03, after a downgrade from Longbow to "underperform" from "neutral" -- with the brokerage firm calling a fourth-quarter sales miss a "near-certainty." This bearish analyst attention comes as the Consumer Electronics Show wraps up, where GoPro Inc announced new products and the relaunch of its Karma drone -- sparking a short-lived breakout for the shares. Nevertheless, GPRO is now down nearly 50% from its early October highs, and hit a record low of $8.54 in mid-December. Option bears are likely cheering today's drop, with GPRO's 50-day put/call volume ratio of 1.50 at the ISE/CBOE/PHLX docked at an annual peak.
- SHAK is down 4.8% at $37.56, after Chief Financial Officer Jeff Uttz said he will retire in March. Barclays also cut its target price to $38 from $40 for Shake Shack Inc. SHAK still sits in positive territory year-over-year, with recent pullbacks finding support in the $35-$36 range -- home to the stock's November bull gap lows and 50-day moving average. And while short interest on SHAK dropped nearly 22% in the last two reporting periods, these bearish bets still account for a whopping 33.8% of SHAK's float, or 7.8 times the stock's average pace of trading.
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap