Analysts React to Earnings from Acacia Communications, Tableau Software

ACIA sank to a fresh annual low following the company's disappointing outlook

Nov 3, 2017 at 9:47 AM
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Analysts are weighing in on tech stocks Acacia Communications, Inc. (NASDAQ:ACIA) and Tableau Software Inc (NYSE:DATA), as well as oil concern Chesapeake Energy Corporation (NYSE:CHK). Here's a quick roundup of today's bearish brokerage notes on ACIA, DATA, and CHK.

Acacia Communications Stock Sinks to Fresh Low After Earnings

Acacia Communications stock earlier touched an annual low of $38.29, and was last seen down 1.2% at $38.63, as a disappointing current-quarter outlook outweighs a third-quarter earnings beat. At least three brokerage firms cut their price targets, including Morgan Stanley to $40 from $45, though B. Riley upgraded the shares to "buy" from "neutral" and moved its price target up to $49 from $44.

ACIA shares have struggled in 2017, losing roughly 40%. Looking back, the security has traded sideways since April, when short interest peaked at a record high of 10.02 million shares. Short interest has since dropped to 9.49 million shares, but this is still 25 times ACIA's average daily trading volume. Thus, shorts are likely cheering today's decline.

Tableau Software Receives Mixed Analyst Attention After Earnings

Another tech stock taking a plunge this morning is Tableau Software, last seen trading 11% lower at $73.04, after the company's third-quarter earnings and revenue came in below forecasts. As a result, no fewer than four brokerage firms cut their price targets, including Jefferies to $67 from $70. BMO and Barclays, however, raised their price targets to $77 and $82, respectively.

Unlike ACIA stock, DATA shares have surged the charts this year, nearly doubling to an annual high of $82.32 yesterday. Nevertheless, options traders were upping the bearish ante ahead of the earnings event, as evidenced by the equity's 10-day put/call volume ratio of 1.28 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 88th percentile of its annual range. In other words, options traders bought to open DATA puts relative to calls at a faster-than-usual clip during the past two weeks.

Chesapeake Energy Shares Rise Despite Price-Target Cut

Shares of Chesapeake Energy are up 1% at $3.69, even after Barclays cut its price target to $2 from $3, following yesterday's reports of the company's third-quarter revenue miss. CHK shares have lost almost half their value this year, and the 80-day moving average has contained breakout attempts dating back to April.

Despite the stock's dismal price action, options traders on the ISE, CBOE, and PHLX had high hopes. The security's 10-day call/put volume stands at 10.28 -- in the 96th annual percentile -- meaning options players bought to open more than 10 CHK calls for every put during the past two weeks.


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