Notable Downgrades: Whole Foods Market (WFM), King Digital (KING), Wal-Mart Stores (WMT)

Downgrades

In a report published Friday, Pivotal Research Group analysts initiated coverage on Whole Foods Market, Inc. (WFM) with a ‘Sell‘ rating and $29 price target.

On valuation measures, Whole Foods Market Inc. shares currently have a PEG and forward P/E ratio of 1.76 and 18.71, respectively. Price/sales for the same period is 0.79 while EPS is $1.67. Currently there are 7 analysts that rate WFM a ‘Buy’, 24 rate it a ‘Hold’. Two analysts rate it a ‘Sell’. WFM has a median Wall Street price target of $38.00 with a high target of $53.00.

In the past 52 weeks, shares of Austin, Texas-based retailer of natural and organic foods have traded between a low of $33.01 and a high of $57.57 and are now at $33.31.

Shares are down 10.15% year-over-year and 32.56% year-to-date.

King Digital Entertainment plc (KING) had its rating lowered from ‘Overweight‘ to ‘Neutral‘ by analysts at JP Morgan (JPM) on Friday. Currently there are 6 analysts that rate KING a ‘Buy‘ versus no analysts rating it a ‘Sell‘. Seven analysts rate it a ‘Hold‘.

KING was down $1.84 at $13.36 in midday trade, moving within a 52-week range of $10.68 to $18.00. The name, valued at $4.15 billion, opened at $12.93.

On valuation measures, King Digital Entertainment PLC shares are currently priced at 7.08x this year’s forecasted earnings. Ticker has a t-12 price/sales ratio of 2.12. EPS for the same period registers at $1.89.

King Digital Entertainment shares have increased 19.68% on a year-over-year basis, while the Standard & Poor’s 500 index has climbed slightly more than 6.50%.

Wal-Mart Stores Inc. (WMT) was reiterated as ‘Hold’ with a $80 from $81 price target on Friday by Deutsche Bank (DB).

Wal-Mart Stores Inc. recently traded at $72.26, a gain of $0.15 over Thursday’s closing price. The name has a current market capitalization of $232.72 billion.

As for passive income investors, the company pays shareholders $1.96 per share annually in dividends, yielding 2.70%. Five year average dividend yield currently stands at 2.30%.

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