Cree, Qualys, Whole Foods Downgraded

Analysts are weighing in on LED specialist Cree, Inc. (NASDAQ:CREE), cloud concern Qualys Inc (NASDAQ:QLYS), and grocery stock Whole Foods Market, Inc. (NASDAQ:WFM). Here's a quick roundup of today's bearish brokerage notes on CREE, QLYS, and WFM.

Cree Falls on Blocked Wolfspeed Sale

CREE has dropped 4.6% at $26.63, after the company warned that the $850 million sale of its Wolfspeed Power unit to Infineon Technologies could be blocked by regulators. As a result, the stock's year-to-date gains as of Wednesday's close have evaporated. Exacerbating Cree, Inc.'s losses, JMP downgraded the shares to "market perform" from "outperform," echoing the prevailing posture seen among analysts. Specifically, 11 of 13 brokerage firms with coverage on the stock consider it a lukewarm "hold."

Earnings Report Rocks Qualys Stock

QLYS is getting hammered following a poorly received earnings report. Specifically, the stock has shed 3.3% to trade at $35.65, earlier bouncing from its 200-day moving average, though not before finding a spot on the short-sale restricted list. Meanwhile, First Analysis lowered its rating on Qualys Inc to "equal weight" from "overweight," while RBC and Stifel trimmed their target price to $35 and $38, respectively. Today's sharp drop should be well-received in options land. The stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is a top-heavy 9.69 -- with nearly 10 puts bought to open for every call.

Whole Foods Overcomes Weak Guidance

After initially dropping out of the gate, WFM was last seen 1.2% at $29.66, following the company's fiscal first-quarter revenue results and full-year guidance update. The grocery chain also announced a 2.4% drop in same-store sales, and plans to shutter nine locations. At least six analysts have responded with price-target cuts. However, Whole Foods Market, Inc. is perched near its year-over-year breakeven level, which could potentially serve as a springboard. If the stock manages to shake off its poorly received earnings report and bounce, there's plenty of pent-up buying power on the sidelines. Specifically, WFM sports a short-interest ratio (SIR) of 6.90, meaning it would take short sellers more than a week to cover their bearish bets.