AMBA, DLTH, UNFI Stocks Downgraded Today

Duluth Holdings is just the latest retail stock to drop

Josh Selway
Jun 7, 2017 at 10:18 AM
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Analysts are weighing in on GoPro supplier Ambarella Inc (NASDAQ:AMBA), apparel retailer Duluth Holdings Inc (NASDAQ:DLTH), and health foods stock United Natural Foods, Inc. (NASDAQ:UNFI). Here's a quick roundup of today's bearish brokerage notes on shares of AMBA, DLTH, and UNFI.

Weak Forecast Drops AMBA Stock

Ambarella stock is down 10.6% at $553.39, as the company's lackluster current-quarter forecast overshadows an earnings beat. Plus, Deutsche Bank lowered its price target by $1 to $54. It's been a choppy year on the charts for AMBA, with the shares marking a low of $46.32 exactly one year ago and a high of $74.95 on Oct. 3. Today's bear gap has AMBA back below its year-to-date breakeven mark of $54.13.

Options traders have continued to buy to open calls relative to puts at a near-annual-high pace, though. In fact, Ambarella's 50-day call/put volume ratio of 2.57 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 94% of other readings from the past year. 

DLTH Stock Tumbles After Earnings

Duluth Holdings is the latest retail stock to take a hit, after Macy's gross margin warning sank department stores yesterday. DLTH is down 16.6% at $17.15 -- and earlier touched an annual low of $16.90 -- after the company's weaker-than-expected quarterly earnings sparked a price-target cut to $25 from $27 at Raymond James.The shares have fallen off sharply since peaking at $38.19 in November, and though the stock is short-sale restricted today, this is great news for short sellers. Specifically, these bears control 3.2 million DLTH shares, which equates to 20 times its average daily trading volume. 

Sales Miss Weighs On UNFI Stock

United Natural Foods stock is down 1.9% at $40.12, after the company's quarterly sales fell short of forecasts. In response, Deutsche Bank dropped its price target to $43 from $46, while Pivotal Research lowered its target by $1 to $32. This puts UNFI dangerously close to its 52-week low of $38.52, set back in September, as it remains in the channel of lower highs and lows it's been in since the end of 2016. The vast majority of analysts are already bearish on United Natural Foods stock, with 90% rating it a "hold" or worse. 


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