3 Stocks Sinking on Downgrades

Options traders have been betting against PTCT stock in recent weeks

Managing Editor
Oct 9, 2017 at 10:02 AM
facebook twitter linkedin

Analysts are weighing in on healthcare firm Medtronic Plc (NYSE: MDT), video game stock Take-Two Interactive Software Inc (NASDAQ:TTWO), and biotech PTC Therapeutics, Inc. (NASDAQ:PTCT). Here's a quick roundup of today's bearish brokerage notes on shares of MDT, TTWO, and PTCT.

Wells Fargo Downgrades MDT Stock

Medtronic stock is down 2.9% to trade at $77.49, after Wells Fargo downgraded the healthcare name to "market perform" from "outperform." The stock also received at least four price-target cuts, including one to $83 from $91 at Stifel. The flurry of bearish analyst attention comes after Medtronic updated the impact of Hurricane Maria on its fiscal second-quarter results.

MDT stock has shed 13.6% since touching a record high of $89.72 on June 26, and the extended pullback has been guided by the shares' 30-day moving average. A continued slide could encourage more downgrades -- which may create additional headwinds for the shares. As of last Friday's close, 11 of the 18 brokerages covering MDT stock rated it a "buy" or "strong buy."

Overbought TTWO Stock Slips After Downgrade

Cowen and Company chimed in on video game stocks today, saying it can't justify a bullish note for the outperforming sector amid a crowded calendar for fall game releases and sky-high expectations. Take-Two Interactive Software was not spared, getting downgraded to "market perform" from "outperform."

TTWO stock, which is currently down 3.1% to trade at $103.91, touched a record high of $107.53 last Friday, and is still maintaining a 110% year-to-date gain. Considering the security's 14-day Relative Strength Index (RSI) closed Friday at 70 --- signaling the shares were "overbought" -- today's pullback may have been in the cards.

J.P. Morgan Securities Downgrades PTC Therapeutics Stock

J.P. Morgan Securities downgraded PTC Therapeutics to "underweight" from "neutral" and slashed its price target by $8 to $15, sending the biotech stock down 4.1% to trade at $18.83. Analysts cited a low probability of approval from the Food and Drug Administration (FDA) for the company's rare muscle disease treatment by the Tuesday, Oct. 24, deadline date. It's nevertheless been a stellar year for PTCT stock, which has tacked on over 72% year-to-date.
Options traders an the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have had a healthier-than-usual appetite for puts over calls lately. PTCT stock sports a 10-day put/call volume ratio of 2.24 -- higher than 84% of comparable readings taken in the past year.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1