EARN25

Bear Notes Follow Finisar's Soft Quarter

Most analysts are actually bullish on the Apple supplier

Mar 9, 2018 at 10:23 AM
facebook X logo linkedin


Fiber optics stock Finisar Corporation (NASDAQ:FNSR) has slumped 11.2% out of the gate to trade at $17.95, after the company's fiscal third-quarter earnings report failed to meet expectations. Earnings and revenue for the period both missed estimates, and the company's current-quarter forecast was also lower than expected. As a result, a number of analysts are trimming their outlooks on FNSR shares.

At least four price-target cuts have come through this morning, with the lowest of $20 coming from Raymond James. Meanwhile, Morgan Stanley initiated coverage with an "equal weight" rating and $21 price target. Most analysts were bullish on Finisar coming into today, with eight of 11 saying it's a "buy," suggesting there's potential for more bear notes should the stock fail to recover from today's weakness.

There are plenty of bears surrounding FNSR, too. For instance, short interest represents 11% of the stock's float, and it would take short sellers a week to cover their positions, based on average daily volumes. Today, however, the stock is on the short-sale restricted list.

Given Finisar's long-term technical performance, the bearish bias seems to make more sense. The shares have been in a channel of lower highs and lows since early 2017, shedding almost half their value over the past year, with their 160-day and 200-day moving averages thwarting almost every breakout attempt along the way.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!