Post-Earnings Bear Notes Hit SWIR, NTAP Stocks

Put buying was popular on NTAP

Feb 14, 2019 at 9:30 AM
facebook X logo linkedin


Wall Street is punishing shares of Sierra Wireless, Inc. (NASDAQ:SWIR) and NetApp Inc. (NASDAQ:NTAP) before the open, with the stocks set to open down 22% and 8.4%, respectively. Let's dig into the earnings results and sentiment data on SWIR and NTAP below.

Sierra Wireless missed on both earnings per share and revenue for the fourth quarter, and also delivered a tepid full-year outlook. At least six bear notes have come in after the results, with Macquarie downgrading its rating on the communications specialist to "underperform" from "neutral."

SWIR stock is ready to open at a nearly three-year low, moving lower after recently running into its 80-day moving average. The shares had been struggling since their 52-week high of $22.58 from September.

Turning right to NTAP, it's seen at least five bearish brokerage notes come through. William Blair and J.P. Morgan Securities both downgraded the equity to the equivalent of a "hold," and the latter firm cut its price target to $75 from $80, though it added that it still believes NetApp is undervalued despite momentarily being stuck in the "penalty box."

As for earnings, the company's quarterly revenue came in weak, as did its current-quarter sales outlook. This underperformance may have been what recent options traders were betting on, as data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day put/call volume ratio of 1.65, ranking in the 82nd annual percentile, showing a stronger-than-usual demand for long puts over calls.

NTAP stock also just ran into its 80-day moving average, and is moving further away from its annual high of $88.08 from early September. Another loss today would mark a third straight post-earnings loss for NetApp.

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI