Analyst Downgrades: Netflix, Inc., hhgregg, Inc., and Cray Inc.

Analysts downwardly revised their ratings and price targets on streaming stock Netflix, Inc. (NFLX), electronics retailer hhgregg, Inc. (HGG), and tech stock Cray Inc. (CRAY)

Jan 10, 2017 at 10:33 AM
facebook X logo linkedin


Analysts are weighing in on streaming stock Netflix, Inc. (NASDAQ:NFLX), electronics retailer hhgregg, Inc. (NYSE:HGG), and tech stock Cray Inc. (NASDAQ:CRAY). Here's a quick roundup of today's bearish brokerage notes on NFLX, HGG, and CRAY.

  • NFLX is up 0.1% at $131.74 -- in spite of Wedbush reiterating its "underperform" rating and $60 price target, which represents a decline of more than 50% from the stock's current price -- thanks to alleged takeover chatter that cites Facebook Inc (NASDAQ:FB) as a potential suitor (subscription required). The shares have been on a tear upwards over the last several weeks, up more than 19% since their November lows, touching a record high of $133.88 on Friday. Netflix, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 1.09 ranks just 3 percentage points from an annual peak -- indicating near-term traders have rarely been more put-skewed in the past 12 months.

  • HGG is down a whopping 45.5%, trading at just $0.71, after issuing a disappointing preliminary sales for the fiscal third quarter. hhgregg, Inc. was also hit with a price-target drop to $0.50 from $1 from UBS analyst Michael Lasser, who also reiterated UBS' "sell" rating. HGG has been declining since late 2013, and today touched a record low of $0.60. Short sellers are likely cheering today's drop, with short interest accounting for more than 45% of HGG's float -- an amount that would take a whopping 61.3 days to cover, at HGG's average daily volume.

  • CRAY is up 3.6% at $20.98, even after estimating full-year sales below expectations. The stock is also shaking off a pair of price-target cuts, with Craig-Hallum slashing its price target to $16 from $18, while Pacific Crest trimming its target to $27 from $29. CRAY seems to have found a foothold near the $18-$20 level in recent weeks, though the shares are also looking up at potential resistance from their 80-day moving average. Elsewhere, although absolute volume runs relatively light, bearish betting has ramped up in recent weeks, with CRAY's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.20 sitting higher than 92% of all other readings from the past 12 months.
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI