Another analyst thinks IRBT stock has run too far
iRobot Corporation (NASDAQ:IRBT) has been one of the best stocks in 2018, up close to 50% year-to-date while touching a record high of $118.75 just last week. However, investment research firm Sidoti just downgraded IRBT to "neutral" from "buy" since the shares are approaching the analyst's price target of $118. Still, the security has overcome early losses and was last seen slightly higher on the day at $113.55.
The bearish attention is actually nothing new for IRBT stock, with just three of the nine brokerages in coverage handing out "strong buy" recommendations. In fact, Raymond James issued a similar note two months ago, saying at the time that the shares had run too far too fast -- though iRobot is up almost 43% since.
Short interest also remains extremely elevated on the equity, representing a whopping 40% of the total float. Meanwhile, near-term options data also hints at underlying skepticism toward the security. Specifically, the Schaeffer's put/call open interest ratio (SOIR) stands at 1.61, showing put open interest outweighs call open interest by a wide margin among contracts expiring within three months. This reading ranks in the 95th annual percentile, too, so such a put-skew is highly unusual.