The futures traded sharply lower Monday morning as we begin the holiday-shortened trading week before Christmas. Fears over a mutant strain of the COVID-19 in the United Kingdom, which has resulted in a tough lockdown in London and southeast England, also led to a number of countries to block travel from Britain. With the final quad witching options and futures expiration for the year on Friday, we saw some rising volatility, which looks to be continued this week and next as portfolio rebalancing for the end of the year, and the new pandemic fears give investors and portfolio managers reasons to put shares up for sale. Investors should be reviewing portfolios and adjusting positioning for 2021.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top analyst upgrades, downgrades and initiations seen on Monday, December 21, 2020.
Ally Financial Inc. (NYSE: ALLY) was started with an Outperform rating and a $41 price target at RBC Capital Markets. The Wall Street consensus target for the bank is $38.19. The last trade on Friday came in at $33.56 a share.
Avalon Bay Communities Inc. (NYSE: AVB) was downgraded from Overweight to Neutral with a $182 price objective at JPMorgan. The giant apartment real estate investment trust has a $170.72 consensus target, and a Friday’s closing price was $158.44.
Callaway Golf Co. (NYSE: ELY) was downgraded from Buy to Neutral with a $24 price target at Compass Point. The posted consensus target is $24.25. The shares were last seen trading at $24.74.
CDK Global Inc. (NASDAQ: CDK) was named as the Zacks Bear of the Day stock. The firm said that the automotive industry is still feeling the pain of the pandemic and this stock is seeing estimates fall. Shares last closed at $50.97 and have a consensus price target of $60.60.
Digital Turbine Inc. (NASDAQ: APPS) was downgraded from Buy to Hold with a $60 price target at Canaccord Genuity. The consensus target is $43.42, and Friday’s closing price was $57.44, after a 7.4% gain on the day. That is coming back fast as the stock was down almost 6% in Monday’s premarket.
Fiverr International Ltd. (NYSE: FVRR) was started with a Buy rating and a $253 price target at Goldman Sachs. The stock had a hot initial public offering last year and has been on an incredible run, and it has a $176 consensus target. The final trade on Friday came in at $209.29.
Infinera Corp. (NASDAQ: INFN) was downgraded to Neutral from Buy at B. Riley Securities, which did raise the price target to $11.50 from $10.50 though. The consensus price target is $9.12. The last trade Friday was reported at $11.19, and shares were up almost 5% in the premarket despite the downgrade.