Analyst Update: Angie's List, FedEx, and Zep

Analysts adjusted their ratings on Angie's List Inc (ANGI), FedEx Corporation (FDX), and Zep, Inc. (ZEP)

Apr 8, 2015 at 12:04 PM

Analysts are weighing in today on business review site Angie's List Inc (NASDAQ:ANGI), package delivery expert FedEx Corporation (NYSE:FDX), and chemical cleaner concern Zep, Inc. (NYSE:ZEP). Here's a quick look at today's brokerage notes on ANGI, FDX, and ZEP.

The shares of ANGI are 5.3% lower to $5.75, after B. Riley downgraded its rating on the equity to "neutral." On the charts, Angie's List Inc's technical performance has been dreary, as the shares have fallen over 54.4% year-over-year. Some options traders have kept the faith, though, as ANGI's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.51 stands higher than 97% of all similar readings taken over the past year. However, short interest has grown nearly 28% over the past two reporting periods, and now accounts for 19.8% of ANGI's available float. Said another way, a portion of this call buying could be at the hands of short sellers looking to hedge their positions.

RBC raised its price target on FDX to $180 from $169 while keeping its "sector perform" rating, following yesterday's news that the company will purchase Dutch competitor TNT Express. At last check, the shares of FedEx Corporation were down 0.9% to $169.61, bringing their year-to-date loss to 2.3%. Put activity has been prominent in the options pits, as FDX's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.18 rests in the 81st percentile of its annual range. Meanwhile, the brokerage bunch is mostly bullish on the equity, as 58% of covering analysts rate it a "strong buy," with no "sell" recommendations on the table.

ZEP is lighting it up today, as the firm posted rising fiscal second-quarter sales and announced it will be taken private by New Mountain Capital LLC for approximately $692 million (or $20.05 per share). As a result, the shares of Zep, Inc. have skyrocketed 17.4% to $20.06 -- and earlier hit an annual high of $20.15 -- putting them at a 32.5% gain for 2015. In the options pits, ZEP's Schaeffer's put/call open interest ratio (SOIR) of 0.11 sits in the 9th percentile of its annual range, implying that near-term speculators have rarely been this call-heavy over the past year.

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