WDAY, RH, WLL Stocks Downgraded Today

Rh shares are short-sale restricted following the retailer's ugly forecast

Jun 2, 2017 at 10:10 AM
facebook X logo linkedin


Analysts are weighing in on software stock Workday Inc (NYSE:WDAY), home furnishings retailer RH (NYSE:RH), and oil-and-gas issue Whiting Petroleum Corp (NYSE:WLL). Here's a quick roundup of today's bearish brokerage notes on shares of WDAY, RH, and WLL.

WDAY Stock Swings to New High After Earnings

After taking an initial dip at the open, Workday stock was last seen trading up 0.8% at $102.29, fresh off a three-year high of $103.69, after the company's first-quarter earnings results topped expectations. While a number of analysts raised their price targets, BTIG lowered its rating to "neutral," and Citigroup cut its price target to $72 from $77. The shares are now up 55% year-to-date, and WDAY options traders should be pleased. WDAY stock has a Schaeffer's put/call open interest ratio (SOIR) of 0.50, which is just 4 percentage points from a 12-month low, revealing a strong call-skew among short-term options traders. 

RH Stock Sinks on Ugly Forecast

RH last night cut its full-year profit outlook, and the shares are getting crushed in response. RH stock was last seen down 26% at $42.35 -- on track for its worst day in putting it more than a year, and putting it on the short-sale restricted list. Meanwhile, Telsey Advisory Group lowered its price target to $48 from $56, and Deutsche Bank cut its target to $45 from $50. Despite the drop, RH stock is still trading comfortably above its year-to-date breakeven level near $30.

Nevertheless, RH options traders were growing defensive ahead of earnings. RH's 10-day put/call volume ratio of 3.91 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is just 4 percentage points from a 12-month high, meaning puts have been bought to open over calls at a near-annual-high clip.

WLL Stock Hit with Another Downgrade

Whiting Petroleum stock is on the receiving end of another analyst downgrade, with Credit Suisse lowering its rating to "neutral" from "outperform." WLL was last seen 2.7% lower at $6.78, bringing its year-to-date slide to nearly 44%. Data suggests it's a good time to buy Whiting Petroleum options, whether it be calls or puts. This is according to WLL stock's Schaeffer's Volatility Index (SVI) of 66%, which ranks below 96% of all readings from the past year, suggesting low volatility expectations are being priced into near-term options. 
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI