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Analyst Downgrades: Ariad Pharmaceuticals, Inc., Lululemon Athletica inc., and Skechers USA Inc

Analysts downwardly revised their ratings and price targets on Ariad Pharmaceuticals, Inc. (ARIA), Lululemon Athletica inc. (LULU), and Skechers USA Inc (SKX)

Oct 21, 2016 at 9:55 AM
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Analysts are weighing in on drugmaker Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), yoga apparel seller Lululemon Athletica inc. (NASDAQ:LULU), and shoe stock Skechers USA Inc (NYSE:SKX). Here's a quick roundup of today's bearish brokerage notes on ARIA, LULU, and SKX.

  • A day after collapsing on Bernie Sanders' letter, ARIA was hit with an "underweight" initiation at Barclays -- which also offered up a price target of $9. This morning, the stock is up 1% at $10.89, but has pulled back quite sharply from its roughly three-year high of $14.34, touched last week. Amid the selloff, option bears have been piling on Ariad Pharmaceuticals, Inc., per data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the stock's 10-day put/call volume ratio across those exchanges is a top-heavy 4.68, outstripping 96% of comparable readings from the past year.
  • LULU has dropped 1.2% to trade at $57.09, after Jefferies slashed its price target to $61 from $76. The shares have had a rough go of it since the late summer, when they touched a three-year peak of $81.81. Not surprisingly, Lululemon Athletica inc. has been a popular target among short sellers. A lofty 16.4% of the stock's float is sold short, which would take nearly nine sessions to buy back, at LULU's normal daily trading pace.
  • SKX has cratered 15.6% at $19.35 -- and landed on the short-sale restricted list -- following a lackluster earnings report and gloomy guidance. Adding insult to injury, Citigroup reduced its rating to "neutral" from "buy," and slashed its price target to $21 from $33. Also worth noting, Skechers USA Inc stock hit an annual low of $19.04 earlier. Suffice it to say, bearish options bettors should be happy right now. SKX's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.48 ranks just 10 percentage points from an annual high.
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