Analyst Downgrades: Ambarella, Endo, Cheniere Energy

Analysts downwardly revised their ratings on Ambarella Inc (NASDAQ:AMBA), Endo International plc - Ordinary Shares (NASDAQ:ENDP), and Cheniere Energy, Inc. (NYSEMKT:LNG)

Josh Selway

Sep 29, 2015 at 9:55 AM

Analysts are weighing in on semiconductor firm Ambarella Inc (NASDAQ:AMBA), pharma stock Endo International plc - Ordinary Shares (NASDAQ:ENDP), and natural gas expert Cheniere Energy, Inc. (NYSEMKT:LNG). Here's a quick roundup of today's bearish brokerage notes on AMBA, ENDP, and LNG.

Pacific Crest last night lowered its price target on AMBA to $102 from $123. This morning, the shares are down 0.2% at $54.92. Looking back, it's been a hectic year on the charts for Ambarella Inc. The stock surged to a record high of $129.19 on July 23, but has since given back more than half its value. Options traders are growing optimistic, though, as AMBA's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) has jumped from 0.97 to 1.69 over the past two weeks. In other words, call buying has been growing in popularity lately.

The Street is weighing in on ENDP, after the company yesterday completed its acquisition of Par Pharmaceutical and provided financial guidance. RBC, for example, cut its price target to $100 from $107, but kept its "Top Pick" assessment for the stock. Leerink also lowered its price target, cutting it to $74 from $96. As a result, the shares are 1.1% lower at $61.15, continuing their recent downtrend; Endo International plc was already off 14% in 2015 coming into today. It's worth keeping an eye out for additional bearish coverage, too, as seven of 12 brokerage firms consider ENDP a "strong buy."

For the second time in two weeks, activist investor Carl Icahn has upped his stake in LNG, and now controls 11.43% of the stock's float. This news is taking precedent over a price-target cut at Goldman Sachs to $65 from $73, with the shares gaining 1.6% to $48.21. The equity has been trending lower recently, trailing the S&P 500 Index (SPX) by 22 percentage points during the past three months. In response, short-term speculators have grown more put-skewed than at any other point during the past year. By the numbers, LNG's Schaeffer's put/call open interest ratio (SOIR) of 1.42 marks an annual high.

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!