"Sell" Rating Sinks CenturyLink Before Earnings

CenturyLink earnings are due out later today

Nov 6, 2019 at 10:11 AM
facebook X logo linkedin

CenturyLink, Inc. (NYSE:CTL) is trading down 4.1% today at $13.11, after a bearish analyst note came through just before the company's post-close earnings release today. Guggenheim downgraded the shares to "sell" from "neutral," saying the company should consider suspending its dividend as margin pressure will begin to catch up with it.

Most analysts are already on the skeptical side with CTL, with nine of 12 handing out "hold" recommendations. Options traders are also positioned somewhat bearishly, based on the Schaeffer's put/call open interest ratio (SOIR) of 1.47, which ranks in the 84th annual percentile. In short, near-term options traders are unusually put-skewed.

Short interest remains high, too, accounting for almost two weeks' worth of buying power, based on average trading volumes. CTL had been putting pressure on bears in recent weeks, yesterday rising to its highest point since February, putting its 14-day Relative Strength Index (RSI) into overbought territory at 71.

What's more, the earnings history for CenturyLink favors the pessimists, since it's closed lower the day after reporting in four straight quarters. The options market is pricing in a 12.7% next-day swing for the shares, which would be more volatile than the two-year average post-earnings move of 8.8%.





How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.