Analysts downwardly revised their ratings and price targets on NFLX, HGG, and CRAY
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.
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