Rare Sales Miss Sinks Juniper Networks Below Important Moving Average

Juniper Networks was above $30 as recently as November

Jan 30, 2019 at 9:50 AM
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Juniper Networks, Inc. (NYSE:JNPR) is trading down 8.8% this morning at $25.48, one of the worst stocks on the New York Stock Exchange (NYSE), after the tech company reported fourth-quarter revenue below estimates -- the first such miss in at least eight quarters -- due to notable weakness out of its cloud business. The company also issued a disappointing full-year forecast, and analysts are cutting their views as a result.

So far, at least four brokerage firms have lowered their price targets on JNPR stock, with J.P. Morgan Securities setting the bar the lowest at $24. There haven't been any downgrades yet, but that could be because most firms are already cautious on the security, evidenced by 11 of 17 in coverage handing out "hold" or "strong sell" recommendations.

Meanwhile, short interest is also elevated on Juniper Networks, so these bears will be cheering today. Specifically, the 15.67 million shares sold short is equal to 5.7 times the average daily trading volume. Of course, today's losses have JNPR on the short-sale restricted list.

The pullback also has the equity below the 200-day moving average, a long-term level of support. Traders should also watch the $25 level closely, as this price point marked a bottom when the shares gapped lower back in late July. Overall, the stock is down roughly 19% since its early November high of $30.80.

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