Citigroup, Secureworks, Lululemon Downgraded

Citigroup, Secureworks, Lululemon received bearish analyst attention ahead of today's open

Mar 30, 2017 at 9:26 AM
facebook twitter linkedin

Analysts are weighing in on bank stock Citigroup Inc (NYSE:C), cybersecurity firm Secureworks Corp (NASDAQ:SCWX), and yoga apparel retailer Lululemon Athletica. Here's a quick roundup of today's bearish brokerage notes on shares of C, SCWX, and LULU stock.

Options Traders Stay Bullish on Citigroup Stock

Goldman Sachs this morning trimmed its price target on C to $60 from $61, just above last night's close at $59.39. Citigroup Inc stock has racked up a 12-month advance of 42.3%, touching an eight-year high of $62.53 earlier this month. This price action has lead to a strong bullish bias in the options pits. For instance, C shares sport a 50-day call/put volume ratio of 2.77 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which is just 3 percentage points from an annual high. 

Secureworks Stock Hit with Downgrades

SCWX stock took a hit on Wednesday following the company's fourth-quarter earnings report. Now, a number of bearish notes have come through from analysts, including downgrades to the equivalent of a "hold" from Barclays and Goldman Sachs, with the latter firm removing the shares from its "Americas Buy" list, while cutting its price target to $12 from $15. At $10.33, Secureworks Corp is already down 36.4% since its all-time high above $16 from June, and additional downgrades could lead to extended downside. That is, 80% of covering analysts still deem SCWX shares a "buy" or "strong buy." 

LULU Stock Set for Post-Earnings Sell-off

LULU stock is on pace to lose over 21% of its value when the market opens, extending its string of wild post-earnings moves, after the company's disappointing earnings and outlook.  A number of analysts have since slashed their expectations for the shares, including downgrades to "neutral" from Susquehanna and Citigroup, as well as a handful of price-target cuts. The pre-market losses would put LULU shares -- which closed Wednesday at $66.30 -- in territory not seen in over a year. This is just fine with Lululemon Athletica short sellers, though, who control roughly seven days' worth of buying power, based on LULU's average daily volume. 

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

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1