Analyst Downgrades: Biogen, Lululemon, and SINA

Analysts are weighing in today on biotech firm Biogen Idec Inc (NASDAQ:BIIB), yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU), and Chinese media company SINA Corp (NASDAQ:SINA). Here's a quick roundup of today's bearish brokerage notes on BIIB, LULU, and SINA.

• Citigroup removed BIIB from its "most preferred pharma" list, citing concerns about the company's multiple sclerosis treatment, as well as patent litigation. Technically speaking, however, the stock has shot 33.8% higher over the past 12 months, as of yesterday's close at $317.98. That said, Biogen Idec Inc may be in a position to benefit from an unwinding of pessimism at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The equity's 10-day put/call volume ratio across those exchanges is 1.29 -- just 18 percentage points from an annual high. In other words, traders have been buying to open BIIB puts over calls at a faster-than-usual pace recently.


• LULU saw its rating cut to "underperform" from "neutral" at Sterne Agee, and has stumbled 1.2% out of the gate to $44.64. Longer term, the stock has struggled, shedding 24.4% of its value in 2014. Understandably, the Street has been skeptical of Lululemon Athletica inc., as 19 out of 26 covering analysts have given the shares a "hold" or worse rating. What's more, nearly 21% of LULU's float is sold short, which would take more than three weeks to buy back, at average daily trading volumes.


• Finally, SINA's disappointing revenue forecast is overshadowing its third-quarter earnings beat this morning, and the stock is getting hammered with bearish brokerage notes. Specifically, no fewer than four analysts lowered their price targets on SINA Corp, while Stifel downgraded the shares to "hold" from "buy." This morning, the security is sitting 6% lower at $39.35, which brings its year-to-date deficit beyond 53%. Not surprisingly, traders at the ISE, CBOE, and PHLX have been eyeing a move lower in recent weeks, as SINA's 10-day put/call volume ratio of 0.43 rests above four-fifths of comparable readings taken in the last year.