The futures traded down Wednesday after Tuesday’s across-the-board selling, where all the major indexes and the transportation index closed lower. While the selling of mega-cap technology and the continuation of the inflation narrative seemed to be the biggest impetus behind the sell-off, the Nasdaq rallied from a massive intraday loss to end up the best performer at the close. With most of the first-quarter earnings reporting complete, investors are starting to factor in rising prices, along with a continued tailwind for the market from low interest rates.
Despite the concerns across Wall Street for tapering of the quantitative easing program and clear building inflationary pressures, the Federal Reserve is vowing to keep interest rates contained, which could be one reason for the continued moves higher in the equity markets, even after sell-offs. Note that money markets continue to see massive inflows, which is another big plus.
With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, it makes sense for investors to continue building some cash reserves into the market strength while repositioning portfolios for the balance of the second quarter and the rest of 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 Wednesday, May 12, 2021.
Amarin Corp. PLC (NASDAQ: AMRN): Goldman Sachs downgraded the shares to Sell from Neutral and also lowered the price target to $5. The consensus target is much higher at $10.25m and the stock was last seen trading on Tuesday at $4.61.
Array Technology Inc. (NASDAQ: ARRY): The Piper Sandler downgrade to Neutral from Overweight included the price target lowered to $27. The consensus price target for the solar energy stock is a whopping $44.25. The stock closed Tuesday at $24.95, but the shares were down a massive 28% in the premarket after the company posted higher revenues than expected but lower net income.
BigCommerce Holdings Inc. (NASDAQ: BIGC): Morgan Stanley raised its Underweight rating to Equal Weight and has a $57 price target. The consensus target is $75.08. The stock closed Tuesday at $47.47. Shares were up over 6% in the premarket, in the wake of solid results.