Analyst Downgrades: MEI Pharma, MannKind, Whiting Petro

Analysts downwardly revised their ratings on MEI Pharma Inc (MEIP), MannKind Corporation (MNKD), and Whiting Petroleum Corp (WLL)

Mar 24, 2015 at 9:11 AM

Analysts are weighing in on drugmakers MEI Pharma Inc (NASDAQ:MEIP) and MannKind Corporation (NASDAQ:MNKD), as well as oil-and-gas issue Whiting Petroleum Corp (NYSE:WLL). Here's a quick roundup of today's bearish brokerage notes on MEIP, MNKD, and WLL.

After the shares dropped nearly 70% yesterday due to subpar test results for its cancer drug, MEIP is pointed 2.6% higher ahead of the bell. The stock is gaining premarket despite a couple of bearish brokerage notes, as Wells Fargo cut its rating to "market perform" from "outperform," and Cantor slashed its price target by 50% to $7, while keeping its "buy" opinion. After closing Monday at $1.93, MEI Pharma Inc is now down 54.8% year-to-date. Prior to yesterday's crash, sentiment in the options pits was already bearish, as MEIP's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.53 ranks in the 81st percentile of all equivalent readings taken over the past year. However, before today's downgrade, the brokerage bunch was unanimously bullish on the stock, as all eight covering analysts had doled out a "strong buy" rating.

MNKD is 2.3% higher in electronic trading, after Jefferies cut its price target on the stock by $1 to $9 while keeping its "buy" rating. Looking back, MannKind Corporation has been a technical underperformer, with the shares down about 11.7% year-over-year to close yesterday at $5.22. Sentiment in the options pits has been bearish, as MNKD's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.68 ranks higher than 78% of all similar readings from the past year. Meanwhile, nearly 35% of the security's available float is sold short, which would take 17 sessions to cover, at average trading volumes.

Last night, WLL announced a a secondary public stock offering, sending the shares down 21.5% in premarket trading. In response, Susquehanna cut its price target on the equity by $3 to $37, while keeping its "neutral" opinion. Prior to today's imminent dip, Whiting Petroleum Corp was up 16.3% year-to-date to close yesterday at $38.39. Speculative players are upbeat on the stock's prospects, as WLL's 10-day ISE/CBOE/PHLX call/put volume ratio of 3.68 ranks in the 78th percentile of its annual range.

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