Analysts are weighing in today on social game provider
), online travel company
), and drug maker
). Here's a quick roundup of today's bearish brokerage notes.
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Schaeffer's Investment Research
- Needham downgraded its rating for ZNGA to "hold" from
"buy," while Canaccord, Piper Jaffray, and Macquarie all
lowered their price targets following ZNGA's
dismal earnings report
. Since the start of 2013, ZNGA has gained a whopping 48.3% to
trade at $3.50, but is poised for a 16% drop out of the gate.
on ZNGA has grown more than 22% over the past month,
representing escalating pessimism among stock traders. What's
more, short interest now accounts for 5.3% -- 30.5 million
shares -- of Zynga Inc's available float.
- EXPE also reported lower-than-expected earnings last night,
leading RBC, JPMorgan Securities, Susquehanna, Benchmark,
Jefferies, Cantor, and Cowen to slash their price targets for
the stock. Likewise, Lazard dropped EXPE's rating to
"underperform" from "buy." Technically speaking, EXPE has
advanced 42% year-over-year to its current perch at $65.00, but
is bracing for a 23% plunge at the opening bell. Expedia Inc's
International Securities Exchange (ISE), Chicago Board Options
), and NASDAQ OMX PHLX (PHLX) 10-day put/call volume ratio of
1.11 ranks in the 87th percentile of its annual range,
demonstrating speculators have bearishly picked up puts over
calls at a faster-than-usual rate during the last two weeks.
- UBS cut its rating for VRTX to "neutral" from "buy," and
sliced its price target to $83 from $86, ahead of the company's
turn in the earnings confessional on Monday, and after the drug
maker unveiled a setback regarding its experimental hepatitis C
treatment. On the charts, VRTX has tacked on an impressive 109%
in 2013 to its current price of $87.62, spurring bullish
activity in the options pits. Specifically, VRTX sports a
Schaeffer's put/call open interest ratio
of 0.51, with calls nearly doubling puts among options expiring
in the next three months. This ratio ranks just 10 percentage
points above its 12-month nadir, conveying short-term
speculators' appetite for Vertex Pharmaceuticals Incorporated
calls is at a near-annual high.
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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.