AMD, United Continental, Intra-Cellular Downgraded

Advanced Micro Devices, United Continental Holdings Inc, and Intra-Cellular Therapeutics Inc stocks received bearish analyst attention

by Karee Venema

Published on May 2, 2017 at 10:17 AM
Updated on May 2, 2017 at 10:24 AM

Analysts are weighing in on semiconductor stock Advanced Micro Devices, Inc. (NASDAQ:AMD), airline issue United Continental Holdings Inc (NYSE:UAL), and battered biotech Intra-Cellular Therapies Inc (NASDAQ:ITCI). Here's a quick roundup of today's bearish brokerage notes on AMD, UAL, and ITCI shares.

AMD Profit Margin Forecasts Fall Short

AMD stock is down 18% at $11.12, after a lackluster profit margin forecast overshadowed the company's in-line first-quarter earnings. Macquarie Capital weighed in with a downgrade to "underperform" from "neutral," and cut its price target by 28.6% to $10. Stifel and J.P. Morgan Securities, on the other hand, lifted their respective price targets to $11 and $11.50, which still represent a discount to AMD's closing price on Monday. Today's negative price action is more of the same for Advanced Micro Devices, Inc. shares, which have shed roughly 26% since topping out at a nine-year peak at $15.55 in late February. This downside has come amid increased selling pressure from shorts, too. In the two most recent reporting periods, short interest rose 3.9%, and now accounts for more than 15% of AMD stock's available float.

United CEO In the Hot Seat

United Continental Holdings Inc CEO Oscar Munoz is appearing before the House Transportation and Infrastructure Committee today, answering questions regarding the forcible removal of a passenger that sparked backlash toward UAL stock. Today, for instance, Bernstein cut its price target on UAL to $75 from $79. While the shares are trading up 1.8% at $71.53 this morning, any continued upside could be contained by their 80-day moving average -- a trendline that's served as a ceiling since UAL stock's mid-March selloff. Longer term, the shares remain in the red on a year-to-date basis, but short-term options traders have displayed an unusual preference for calls over puts. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.60 ranks below 78% of all comparable readings taken in the past year.

Analysts Continue to Clobber Intra-Cellular Stock

ITCI stock plunged to a record low on Monday after the company encountered a regulatory hurdle with its schizophrenia drug. Today, the shares are down 11% at $9.34 -- bringing their year-to-date deficit to 38.1% -- following a round of bearish brokerage notes. Specifically, Leerink and Ladenburg Thalmann lowered their ratings to the equivalent of "neutral," while the former, as well as SunTrust Robinson, reduced their price targets on the stock. Short sellers are sitting pretty amid Intra-Cellular Therapies Inc's sharp decline. Short interest on ITCI jumped 8.5% in the latest reporting period, and now accounts for a lofty 14.6% of the stock's available float.

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