GOOGL, MAT, SPLK Stocks Downgraded Today

Splunk's stock chart is getting ugly

Jun 15, 2017 at 10:09 AM
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Analysts are weighing in on FAANG stock Alphabet Inc (NASDAQ:GOOGL), toymaker Mattel, Inc. (NASDAQ:MAT), and software stock Splunk Inc (NASDAQ:SPLK). Here's a quick roundup of today's bearish brokerage notes on shares of GOOGL, MAT, and SPLK.

Alphabet Stock Sinks With Tech, Downgrade 

Tech stocks are reeling again this morning, and Alphabet stock is no exception, down 2.4% at $944.97 -- on pace for its lowest close in nearly a month. Exacerbating the stock's woes is a downgrade to "hold" from "buy" at Canaccord Genuity, which opined that recent ad growth for mobile and YouTube will be hard to replicate, and that GOOGL is "expensive by historical standards."

Meanwhile, GOOGL options traders have been less optimistic than normal toward the stock. For instance, its 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 0.84, ranking in the 78th annual percentile, showing a stronger-than-usual preference for put buying relative to call buying. 

MAT Stock Hammered After Investor Day

Mattel stock is falling once again, as traders pan the company's investor day presentation. MAT more than halved its quarterly dividend, and trimmed its expectations for full-year revenue growth. Analysts today are weighing in, with D.A. Davidson downgrading MAT stock to "neutral" from "buy," and cutting its price target to $24. Likewise, SunTrust Robinson and Monness Crespi Hardt lowered their respective price targets to $23 and $27.

The shares were last seen 6.9% lower at $20.63, after touching an annual low of $20.51 earlier. Additional downgrades are now a possibility, since five of 11 brokerage firms have "strong buy" ratings on MAT. 

Splunk Stock Falls After Wedbush Downgrade

Splunk stock is down 2.5% at $56.15, after Wedbush downgraded the shares to "neutral" from "outperform," and cut its price target to $63 from $72, saying the company's "lack of bookings disclosures makes for ... a 'trust me' story." The shares are still higher on a year-to-date basis, but are now on pace for a second straight close below the formerly supportive 20-week moving average.

This weakness could be catching Splunk options traders by surprise. For instance, the shares have a Schaeffer's put/call open interest ratio (SOIR) of 0.48, revealing call open interest doubles put open interest among contracts set to expire within three months. 


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