Analyst Downgrades: General Electric Company, Infoblox Inc, and Michael Kors Holdings Ltd

Analysts downwardly revised their ratings and price targets on General Electric Company (GE), Infoblox Inc (BLOX), and Michael Kors Holdings Ltd (KORS)

May 12, 2016 at 10:00 AM

Analysts are weighing in on digital industrial firm General Electric Company (NYSE:GE), tech stock Infoblox Inc (NYSE:BLOX), and accessories retailer Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's bearish brokerage notes on GE, BLOX, and KORS.

J.P. Morgan Securities resumed coverage on GE with an "underweight" rating and a $27 price target, sending the stock 0.7% lower at $30.12. Since hitting a seven-year high of $32.05 to end March, the shares have been charting a series of lower highs and lows to test the round $30 level. As a result, bearish options traders have been setting their sights on General Electric Company. Across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.86 puts for every call during the last two weeks -- and the corresponding put/call volume ratio sits just 6 percentage points from a 12-month high.

BLOX saw its price target trimmed to $16 from $17 at D.A. Davidson, following a lackluster earnings report earlier this week. However, a reported buyout bid from Thoma Bravo has the stock 20.2% higher at $18.41. This represents the shares' best single-day percentage gain since Dec. 1. Short sellers are getting singed on Infoblox Inc's upside gap. After rising 22.2% in the latest reporting period, short interest now accounts for 14% of BLOX's float, or 4.5 times the stock's average daily trading level.

Following a disastrous day for retailers, KORS was hit with a price-target cut to $45 from $48 at Canaccord Genuity. As such, the stock is 1.3% lower at $43.43 -- though it may be getting ready to bounce, considering its 14-day Relative Strength Index (RSI) has dropped to 24, well into oversold territory. If Michael Kors Holdings Ltd can rebound, the stock is actually set to benefit from a round of bullish brokerage attention, as 12 of 17 analysts maintain tepid "hold" opinions.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

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!