Q2 STOCKS TO BUY

ADI, RDFN Stocks Get Big Upgrades

RDFN stock is heavily shorted

Jun 10, 2019 at 11:10 AM
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Two stocks that received notable analyst attention this morning were chipmaker Analog Devices, Inc. (NASDAQ:ADI) and real estate name Redfin Corp (NASDAQ:RDFN). Let's take a quick look at the coverage on ADI and RDFN shares. 

ADI stock is trading up 4.9% at $105.66, after Goldman Sachs upgraded the security to "buy" from "sell," and moved its price target up to $114 from $101. This price action has the shares sharply above recent resistance from the 20-day moving average, bouncing from a trendline connecting its lows since October. 

As for sentiment, a slim majority of analysts have bullish opinions on Analog Devices, while options data also points to an upbeat view. Specifically, peak open interest rests at the June 115 call. From a broader view, however, call open interest right now stands in just the 31st annual percentile. 

Turning to Redfin, the stock has also popped above its 20-day moving average, trading up 7.1% at $18.05, following an upgrade to "overweight" from "underweight" at Stephens, which lifted its price target to $23 from $18. The bullish view actually goes against that of the Street, where just four of 14 brokerage firms recommend buying the shares. 

Pessimism is seen elsewhere, as well, with 15.62 million shares dedicated to short interest. This accounts for 22.2% of the equity's float, or 13.4 times the average daily trading volume. Taking a step back, RDFN stock is now testing the site of its early May bear gap. 

 
 

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