CyberArk Software, Macy's, Nordstrom Downgraded

CyberArk announced a costly acquisition along with its latest quarterly earnings

May 12, 2017 at 9:32 AM
facebook twitter linkedin


Analysts are weighing in on IT security specialist CyberArk Software Ltd (NASDAQ:CYBR), department store operator Macy's Inc (NYSE:M), and upscale retailer Nordstrom, Inc. (NYSE:JWN). Here's a quick roundup of today's bearish brokerage notes on shares of CYBR, M, and JWN.

CyberArk Earnings, Conjur Acquisition Spark Downgrade

CBYR shares have tumbled nearly 8% ahead of the bell following last night's earnings report. The Israeli online security firm topped first-quarter earnings and revenue estimates, but its second-quarter guidance for adjusted earnings of 23 to 25 cents per share on $61-62 million in revenue fell short of the consensus analyst forecast. Separately, CyberArk announced a deal to acquire Conjur for $42 million in cash.

In response, Summit Redstone downgraded CYBR stock to "hold." It's a rare bearish note for the equity, which has garnered 15 "buy" or better endorsements out of 18 total recommendations. As of Thursday night's close at $55.15, CYBR had notched a solid year-to-date gain of 21% -- but today's steep pullback from familiar resistance around $55 could easily elicit further downgrades or price-target cuts.

Price-Target Cuts Roll In After Macy's Post-Earnings Sell-Off

Analysts are lowering their expectations en masse after Macy's on Thursday confessed to a 5.2% drop in same-store sales during the first quarter. Jefferies and Cowen both lowered their M price targets yesterday, and today, five more target cuts have come through -- including a Citigroup slash to $23 from $30, which implies expected downside of 5.5% to Thursday's close at $24.35.

In the wake of its drastic post-earnings bearish gap, M stock is trading fractionally higher in electronic action. Short selling was restricted on Macy's shares yesterday, which may have helped drive bears into the retailer's options; Thursday's put volume of 81,592 contracts represented a new 52-week high, according to Trade-Alert.

JWN Joins the Ranks of Struggling Retail Stocks

After the closing bell sounded on Thursday, Nordstrom reported an unexpected decline in same-store sales for the first quarter, even as revenue for the period topped expectations. Analysts at J.P. Morgan responded by lowering their JWN price target to $35 from $41, while Maxim cut its target on the stock to $56 from $61.

JWN settled at $46.21 last night, but is set to open more than 5% lower. This big drop will push Nordstrom stock south of its 50-day moving average for the first time in over a month. It looks like short sellers were the smart money ahead of JWN earnings, with nearly one-quarter of the stock's float dedicated to short interest.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners