Unlike brokerage firms, options traders are optimistic on Gilead stock
Analysts are weighing in on biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD), biotechnology concern BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), and restaurant Chipotle Mexican Grill, Inc. (NYSE:CMG). Here's a quick roundup of today's bearish brokerage notes on shares of GILD, BMRN, and CMG.
GILD Hit with More Analyst Skepticism
BMO cut its price target to $72 from $76 on Gilead Sciences. GILD is trading fractionally lower at $73.65, after moving into positive ground on a year-to-date basis earlier this week.
GILD analysts are slightly skewed toward the bears' camp, with nine out of 17 carrying "hold" recommendations. But options traders are increasingly optimistic about Gilead Sciences, as the stock sports a 50-day call/put volume ratio of 4.63 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 97% of all other readings in the past 12 months, hinting at a much healthier-than-usual appetite for bullish bets over bearish of late.
BMRN Stock Gets Mixed Price-Target Updates
Barclays cut its price target on BMRN stock to $100 from $105. On the opposite spectrum, BMO raised its price target to $117 from $115. BMRN was most recently seen trading at $88.23 -- up 0.6% for the day, but down nearly 6% year-over-year.
Of the 15 analysts following BMRN stock, more than 90% sit in the bulls' camp, carrying a "buy" or better recommendation. However, BioMarin's Schaeffer's put/call open interest ratio (SOIR) of 0.90 sits in the 96th percentile of its annual range, suggesting near-term traders have rarely been more put-biased during the past year.
More Bad News for Chipotle's Nightmare Week
Chipotle is grasping for air after receiving price-target cuts from Canaccord Genuity (to $400 from $440) and Instinet (to $385 from $480). These cuts and downgrades come just after a horrific week for CMG stock, which included a norovirus outbreak that caused Virginia customers to become violently ill, and rats falling from the ceiling of a Dallas restaurant location Thursday.
Chipotle is trading down 0.3% at $354.85, and has now plummeted almost 6% year-to-date. CMG stock now carries a 10-day put/call volume ratio of 2.36 on the International Securities Exchange (ISE), with puts bought to open on this exchange more than doubling calls. This ratio sits in the bearishly slanted 95th percentile of all other put/call ratios in the past year.