Kite Pharma, Planet Fitness, Shake Shack Downgraded

Shares of Kite Pharma, Planet Fitness, Shake Shack are under the gun from analysts

Mar 2, 2017 at 9:11 AM
facebook twitter linkedin

Analysts are weighing in on biotech stock Kite Pharma Inc (NASDAQ:KITE), workout center Planet Fitness Inc (NYSE:PLNT), and burger joint Shake Shack Inc (NYSE:SHAK). Here's a quick roundup of today's bearish brokerage notes on KITE, PLNT, and SHAK shares.

Kite Falls After Stock Offering, Downgrade

KITE is down 3.8% ahead of the open, after the company last night announced a public offering of 4.75 million common shares. What's more, Citigroup this morning downgraded the stock to "neutral" from "buy," though the brokerage firm raised its price target to $87 from $62. Kite Pharma Inc closed Wednesday at $79.62, up more than 51% this week thanks to positive CAR-T drug-trial results. Still, near-term options traders are unusually put-skewed, based on KITE's Schaeffer's put/call open interest ratio (SOIR) of 1.21, which is only 14 percentage points from a 12-month high. 

Planet Fitness Forecast Falls Short

PLNT is down more than 5% in electronic trading, due to the company's disappointing full-year earnings forecast. Adding to the pain, Jefferies lowered its price target to $25, while Cowen cut its target to $23. Planet Fitness Inc shares settled at $21.85 last night, after hitting an all-time high of $22.13 earlier in the session. If PLNT fails to stop the bleeding, it could fall victim to additional bearish analyst attention, since all 10 covering brokerage firms currently deem it a "strong buy." 

Shake Shack Sinks On Same-Store Sales Growth

SHAK is set to drop 3% this morning, as fourth-quarter same-store sales growth was less than Wall Street expected. In response, Stifel lowered its price target by $2 to $33. Shake Shack Inc, which closed Wednesday at $36.12, is already down 12% year-over-year, and options traders are betting on extended downside. For example, SHAK has a 10-day put/call volume ratio of 1.22 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the bearishly skewed 78th annual percentile. 

Get a jump-start on the day's stock market news with Schaeffer's free Opening View newsletter.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners