Analyst Downgrades: United Technologies Corporation, Chico's FAS, Inc., and Garmin Ltd.

Analysts downwardly revised their ratings and price targets on United Technologies Corporation (NYSE:UTX), Chico's FAS, Inc. (NYSE:CHS), and Garmin Ltd. (NASDAQ:GRMN)

Josh Selway

Aug 22, 2016 at 10:05 AM

Analysts are weighing in on Dow stock United Technologies Corporation (NYSE:UTX), retailer Chico's FAS, Inc. (NYSE:CHS), and navigation expert Garmin Ltd. (NASDAQ:GRMN). Here's a quick roundup of today's bearish brokerage notes on UTX, CHS, and GRMN.

UTX is down 0.7% at $108.38, following a price-target cut to $106 from $109 at J.P. Morgan Securities. The stock is up 12.8% in 2016, though it's struggling to fill its bear gap from July 2015. Option traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) certainly seem optimistic. Specifically, 3.21 calls have been bought to open for each put during the past two weeks across these exchanges, with the resultant 10-day call/put volume ratio ranking in the high 81st percentile of United Technologies Corporation's annual range.

CHS is reacting to a price-target reduction to $11 from $12 at Deutsche Bank. The stock was last seen 1.3% lower at $11.71, putting its 12-month decline at 15%. This lackluster technical performance has earned Chico's FAS, Inc. plenty of skepticism from the brokerage bunch. Of the 15 analysts covering CHS, 10 of them say it's just a "hold."

GRMN has dipped 2.6% to $52.97, following a downgrade to "market perform" from "outperform" at Raymond James. The move is somewhat surprising, considering Garmin Ltd. is up 43% in 2016, after the company's impressive earnings report last month. Then again, this skepticism isn't confined to the brokerage bunch, despite the stock's strong showing on the charts. As one example, short interest represents over 9% of GRMN's float, equaling six days' worth of buying power, at normal trading volumes. If the stock can overcome today's drop, a short-squeeze situation is a strong possibility.

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