Analysts downwardly revised their ratings and price targets on FTR, CSCO, and DSW stocks
Analysts are weighing in on telecom stock Frontier Communications Corp (NASDAQ:FTR), blue-chip tech titan Cisco Systems, Inc. (NASDAQ:CSCO), and shoe retailer DSW. Here's a quick roundup of today's bearish brokerage notes on shares of FTR and CSCO, as well as DSW stock.
Jericho Capital Founder: Frontier Going Bankrupt
At the Sohn Investment Conference, Jericho Capital founder Josh Resnick predicted penny stock FTR will be worth literal pennies soon, stating "We think it's going bankrupt." As such, FTR stock is trading down 4.5% at $1.46. Longer term, the shares of Frontier Communications Corp have surrendered almost 55% year-to-date, and hit a 36-year low of $1.40 last Friday. Short sellers have been in the driver's seat for FTR's sharp decline, too. Despite being off its most recent peak, short interest still accounts for almost one-fifth of the stock's available float.
Cisco Systems Downgraded at BMO
BMO downgraded CSCO to "market perform" from "outperform," and trimmed its price target to $35 from $37, leaving little in the way of upside potential. At last check, CSCO stock was trading down 0.3% at $34.18, but remains up 13% year-to-date. Plus, the Dow stock topped out at a 16-year high of $34.60 yesterday, though the overhead $35 mark has served as a stiff ceiling over this nearly two-decade time period. In the options pits, CSCO speculators are optimistic. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 2.74 ranks in the 86th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip on Cisco Systems, Inc.
DSW Stock Down After Downgrade
Buckingham Research downgraded DSW stock to "neutral" from "buy," and sliced its price target by 20% to $20. The stock has responded by dropping 0.2% to trade at $20.86, following yesterday's rejection in the $21 region -- a level that has contained DSW shares since March. More broadly speaking, DSW stock has shed roughly 20% from its mid-December double-top near $26, and short sellers have been hitting the bricks. Short interest plunged 27% in the most recent reporting period, but these bearish bets still account for a healthy 12% of DSW's available float -- or 4.8 times its average daily trading volume.