Analyst Update: Ducommun, McKesson, Rentrak

Analysts adjusted their ratings on Ducommun Incorporated (NYSE:DCO), McKesson Corporation (NYSE:MCK), and Rentrak Corporation (NASDAQ:RENT)

May 13, 2015 at 1:16 PM

Analysts are weighing in today on aerospace engineering concern Ducommun Incorporated (NYSE:DCO), pharmaceutical distribution firm McKesson Corporation (NYSE:MCK), and media insight issue Rentrak Corporation (NASDAQ:RENT). Here's a quick look at today's brokerage notes on DCO, MCK, and RENT.

The shares of DCO are 21.6% lower at $23.98 -- making it the top percentage loser on the Big Board, and earning it a place on the short-sale restricted (SSR) list -- after the company's surprise first-quarter loss was met with a pair of negative brokerage notes. Specifically, Canaccord Genuity cut its price target to $30 from $31 while keeping its "hold" opinion, and D.A. Davidson & Co lowered its target to $28 from $30 while reaffirming a "neutral" rating. Heading into today's session, Ducommun Incorporated had been a technical outperformer, with the shares up over 21% year-to-date. However, today's bear gap has pulled the shares 5.1% into the red for 2015. Looking to the options pits, traders were aligning bullishly ahead of earnings. Over the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 3.50 DCO calls were bought to open for every put. Elsewhere, short interest declined by 26.1% during the last reporting period, and now accounts for a scant 1.6% of the stock's available float.

On the other hand, MCK released fiscal fourth-quarter earnings that toppled analysts' expectations, sending the shares 2% higher to $234.09. In fact, the stock touched a record peak of $236 in intraday action. In response, no fewer than nine brokerage firms raised their price targets on the security, including Raymond James (to $265), J.P. Morgan Securities (to $255), and Credit Suisse (to $263). Additionally, all nine brokerage firms reiterated "outperform" or equivalent ratings. Technically speaking, McKesson Corporation has been a beast, with the shares up over 31% year-over-year. Despite this uptrend, options traders have been betting bearishly on the stock, as MCK's 50-day ISE/CBOE/PHLX put/call volume ratio of 2.43 stands higher than 97% of all similar readings from the past year. Mirroring this indicator is the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.77, which ranks in the 96th annual percentile. Said another way, short-term speculators have only been more put-skewed 4% of the time over the last 12 months.

Wunderlich upgraded RENT to "buy" from "hold" -- and lifted its price target to $65 from $60 -- after the company reported better-than-expected fiscal fourth-quarter revenue. On the charts, Rentrak Corporation has jumped 23.3% to $63, making it one of the top percentage gainers on the Nasdaq. Furthermore, today's pop has the shares above their 200-day moving average for the first time since a post-earnings bear gap in early February. Traders had been picking up calls at a rapid-fire clip ahead of yesterday's earnings release, as 29.5 RENT calls have been bought to open for every put over the last 10 days at the ISE, CBOE, and PHLX. Meanwhile, short interest declined by 5% during the last reporting period, but still accounts for 15% of RENT's available float. It would take these bettors 11 sessions to cover their positions, at average trading volumes.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.