AK Steel, Capital One, Cree Downgraded

AK Steel, Capital One, and Cree stocks received bearish analyst attention

Apr 26, 2017 at 9:54 AM
facebook twitter linkedin


Analysts are weighing in on commodities stock AK Steel Holding Corporation (NYSE:AKS), credit card concern Capital One Financial Corp. (NYSE:COF), and LED maker Cree, Inc. (NASDAQ:CREE). Here's a quick roundup of today's bearish brokerage notes on shares of AKS, COF, and CREE.

AK Steel Stock Bounces Back

AKS received a price-target cut to $7 from $9 at BMO, one day after the company dove on its first-quarter earnings report. Out of the gate, though, the shares are up 2% at $6.53 -- even with significant losses for sector peer U.S. Steel Corporation (NYSE:X) -- trimming their year-to-date deficit to 36%. Of course, analysts have long been on AK Steel Holding Corporation's bearish bandwagon. Seventy percent of brokerage firms rate AKS stock a "hold" or a "strong sell."

Earnings Miss Slams Capital One Stock

COF stock has dropped 2% to $83.79, after a weak first-quarter earnings report. Making matters worse, Instinet and Evercore ISI lowered their respective price targets to $101 and $88, overshadowing Bernstein's upwardly revised target of $111 -- a record high. On the charts, Capital One Financial Corp. has been trending sharply lower since topping out at $96.92 on March 1. This, even as short sellers have been hitting the exits. COF's inability to capitalize on a 16.3% plunge in short interest over the past two reporting periods hints at underlying weakness in the shares.

Cree Stock Falls 10% on Earnings

CREE shares have gapped almost 10% lower to trade at $22.40. This bearish price action follows an earnings miss, which was met with a downgrade to "neutral" from "overweight" at J.P. Morgan Securities. As such, Cree, Inc. shares are on the short-sale restricted list. In the options pits, open interest among contracts expiring in three months or less is extremely put-skewed at the moment. CREE stock sports a Schaeffer's put/call open interest ratio (SOIR) of 1.47, topping 99% of all comparable readings taken in the last 12 months.

 

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!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners