12 Takeover Targets Seeing Worsening Analyst Sentiment

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Compiled by Luis Gonzalez: The following is a list of companies that have been identified as potential takeover candidates by various publications, including Barron's, UBS, Morningstar, Wall Street Journal, Marketwatch, TheStreet.com, and StreetInsider.

In addition, all of these stocks have seen worsening analyst sentiment over the last three months. Analyst ratings are presented on a linear scale, where ratings close to 1 indicate "Strong Buy" while ratings close to 5 indicate "Strong Sell". All of the stocks in this list have seen their ratings move closer towards 5 over the last 3 months, i.e. worsening analyst sentiment.

To create this list, we started with a universe of about 250 takeover targets. We then collected analyst sentiment data, and sorted the list by the change in analyst ratings over the last three months. (If you want to access the complete universe of takeover targets, click here)


If you're a contrarian, this excessive pessimism might raise a flag. Full analysis below.

Analyst ratings sourced from Reuters, short float and performance data sourced from Finviz.

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1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize market cap changes for the top stocks mentioned

 

 

The list has been sorted by the change in analyst ratings over the last three months.

1. Alexion Pharmaceuticals, Inc. (ALXN): Drug Manufacturers Industry. Market cap of $7.66B. Street Insider and Benzinga identified the company as a takeover target. Analyst rating has changed from 1.41 to 1.67 over the last three months. Short float at 5.41%, which implies a short ratio of 5.43 days. The stock has gained 80.44% over the last year.

2. Aeropostale, Inc. (ARO): Apparel Stores Industry. Market cap of $2.24B. Barrons and TheStreet identified the company as a takeover target. Analyst rating has changed from 2.24 to 2.76 over the last three months. Short float at 7.77%, which implies a short ratio of 2.13 days. The stock has gained 10.38% over the last year.

3. Atheros Communications Inc. (ATHR): Semiconductor Industry. Market cap of $3.19B. Barrons identified the company as a takeover target. Analyst rating has changed from 2.12 to 2.41 over the last three months. Short float at 13.14%, which implies a short ratio of 2.72 days. The stock has gained 28.2% over the last year.

4. Fortinet Inc. (FTNT): Computer Peripherals Industry. Market cap of $2.62B. Barrons identified the company as a takeover target. Analyst rating has changed from 1.69 to 2 over the last three months. Short float at 6.29%, which implies a short ratio of 3.98 days. The stock has gained 86.73% over the last year.

5. Human Genome Sciences Inc. (HGSI): Biotechnology Industry. Market cap of $4.82B. Morningstar identified the company as a takeover target. Analyst rating has changed from 1.6 to 2.06 over the last three months. Short float at 7.85%, which implies a short ratio of 3.95 days. The stock has lost -12.16% over the last year.

6. Massey Energy Co. (MEE): Industrial Metals & Minerals Industry. Market cap of $5.52B. Street Insider and CNBC identified the company as a takeover target. Analyst rating has changed from 2.19 to 2.55 over the last three months. Short float at 6.83%, which implies a short ratio of 1.45 days. The stock has gained 13.49% over the last year.

7. Omnicom Group Inc. (OMC): Advertising Agencies Industry. Market cap of $13.69B. Merrill Lynch identified the company as a takeover target. Analyst rating has changed from 1.71 to 2 over the last three months. Short float at 1.93%, which implies a short ratio of 2.44 days. The stock has gained 23.68% over the last year.

8. Rackspace Hosting, Inc (RAX): Internet Software & Services Industry. Market cap of $4.22B. Barrons identified the company as a takeover target. Analyst rating has changed from 1.65 to 2.04 over the last three months. Short float at 20.29%, which implies a short ratio of 11.08 days. The stock has gained 47.33% over the last year.

9. Sony Corporation (SNE): Electronic Equipment Industry. Market cap of $36.07B. CNBC identified the company as a takeover target. Analyst rating has changed from 2.25 to 2.6 over the last three months. Short float at 0.46%, which implies a short ratio of 5.96 days. The stock has gained 5.74% over the last year.

10. Sohu.com Inc. (SOHU): Internet Information Providers Industry. Market cap of $2.67B. Benzinga identified the company as a takeover target. Analyst rating has changed from 2.32 to 2.71 over the last three months. Short float at 8.14%, which implies a short ratio of 2.02 days. The stock has gained 13.43% over the last year.

11. Teradata Corporation (TDC): Diversified Computer Systems Industry. Market cap of $7.71B. Street Insider identified the company as a takeover target. Analyst rating has changed from 1.9 to 2.17 over the last three months. Short float at 0.89%, which implies a short ratio of 1.19 days. The stock has gained 52.45% over the last year.

12. VeriSign Inc. (VRSN): Application Software Industry. Market cap of $5.61B. Street Insider identified the company as a takeover target. Analyst rating has changed from 1.95 to 2.24 over the last three months. Short float at 7.12%, which implies a short ratio of 4.01 days. The stock has gained 34.2% over the last year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Investing Ideas , Stocks


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