This article by Milissa Hudepohl was originally published on Schaeffer's Investment Research.
Analysts are weighing in today on Chinese search engine Baidu.com, Inc. (ADR)
(NASDAQ:BIDU), data storage provider SanDisk Corporation
(NASDAQ:SNDK), and generic drug manufacturer Teva Pharmaceutical Industries Ltd (ADR)
(NYSE:TEVA). Here's a quick roundup of today's bearish brokerage notes.
S&P Capital IQ slashed its rating for BIDU to "hold" from "buy" after yesterday's close. Technically speaking, BIDU has tacked on almost 29% year-to-date to trade at $129.33, and has outperformed the broader S&P 500 Index (INDEXSP:.INX) by 41.7 percentage points over the last three months. What's more, the stock has gained more than 14% since reporting higher-than-expected earnings last Wednesday. Meanwhile, in BIDU's options pits, speculators have bought to open roughly two calls for every put during the past 10 weeks, according to the stock's International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 50-day call/put volume ratio of 2.03. This ratio ranks in the 82nd percentile of its annual range, indicating Baidu.com speculators' appetite for calls over puts is healthier than usual right now.
SNDK saw its rating lowered to "neutral" from "buy" at Goldman Sachs this morning. On the charts, SNDK has grown more than 30% over the past year. On top of that, the stock reached a new seven-year high of $63.97 on July 22, before slumping to its current level at $55.40. Elsewhere, the brokerage bunch is optimistic toward SNDK, which boasts 16 "buy" or better endorsements, compared to four "holds" and one "sell" suggestion. Moreover, SanDisk Corporation's consensus price target stands at $70.00, which represents territory untouched since January 2006.
Finally, Goldman Sachs lowered its rating for TEVA to "sell" from "neutral" ahead of today's opening bell. Since the beginning of the year, TEVA has gained a modest 6.9%, and is currently perched at $39.90. With that being said, the stock sports a Schaeffer's put/call open interest ratio (SOIR) of 0.51, with calls doubling puts among options with a shelf-life of three months or less. This ratio ranks just 2 percentage points from its annual nadir, conveying TEVA's short-term speculators have rarely been more call-heavy throughout the past year. Teva is slated to report earnings before the opening bell on Thursday.
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No positions in stocks mentioned.