Ignore B of A's double downgrade given its 0% accuracy track record — the overwhelming bullish consensus and upward EPS revisions for next quarter suggest the stock still has path to mean target $11.40. However, monitor insider selling and the 55% short ratio as near-term headwinds.
Price Chart
Executive Summary
B of A Securities cut its rating on the stock two notches from Buy to Neutral on May 7, 2026, slashing the price target to $8 from $10. The stock currently trades at $7.52, implying only +6% upside to the new PT, far below the mean target of $11.40 (+51%). The consensus remains heavily bullish at 14 Buy ratings and only 3 Holds, but B of A's move is a sharp contrarian call. However, the firm's track record is abysmal — 0% accuracy on just 2 calls with an average return of -12.3%, making this downgrade less credible. Momentum is tepid with zero upgrades in the past 30 days and one downgrade. EPS revisions are mixed: the current quarter has 7 downward revisions in 30 days, but next quarter shows 5 upward revisions. Insider selling has been persistent — Curtis Liu sold ~$650k in March and May 2026. Short interest is elevated at 55.3% of float, signaling bearish sentiment. Given the low-accuracy source and still-bullish consensus, this downgrade is likely noise rather than a signal to follow.
Impact Score
Consensus & Targets
Full consensus: 5 Strong Buy, 9 Buy, 3 Hold, 0 Sell, 0 Strong Sell (17 analysts total). The consensus is overwhelmingly bullish with 82% Buy-equivalent ratings. B of A's Neutral stance is a clear outlier.
Mean price target $11.40, median $11.00, high $18.00, low $7.00. Current price $7.52 implies +51.6% upside to the mean. B of A's new PT of $8 is below the low end of the range ($7) and well below consensus, implying only +6.4% upside.
Recent Analyst Activity
| Date | Firm | Action | Rating | Price Target |
|---|---|---|---|---|
| 2026-05-07 | B of A Securities | downgrade | Neutral | $8.00 |
| 2026-04-14 | Piper Sandler | maintain | Overweight | $9.00 |
| 2026-02-19 | UBS | maintain | Buy | $10.00 |
| 2026-02-19 | DA Davidson | maintain | Buy | $12.00 |
| 2026-02-19 | Keybanc | maintain | Overweight | $14.00 |
| 2026-02-19 | BTIG | maintain | Buy | $10.00 |
| 2026-02-19 | Piper Sandler | maintain | Overweight | $10.00 |
| 2026-02-03 | Piper Sandler | maintain | Overweight | $12.00 |
| 2026-01-15 | Morgan Stanley | upgrade | Overweight | $16.00 |
| 2025-12-19 | Baird | maintain | Outperform | $15.00 |
30-day analyst activity: 0 upgrades, 1 downgrade. EPS revisions are mixed: current quarter (0q) saw 7 downward revisions vs 1 up in the last 30 days; current fiscal year (0y) had 6 down vs 2 up. However, next quarter (+1q) shows 5 upward revisions vs 1 down — a positive forward tilt. Overall estimates are being revised lower near-term but higher for the following quarter.
Firm Track Record — B of A Securities
B of A Securities accuracy: 54% on 3282 calls | avg return: 5.1%
Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 8 firms with ≥5 scored calls.
| Firm | Accuracy | Calls | Avg Return | vs Average |
|---|---|---|---|---|
| Scotiabank | 100% | 2/2 | 33.4% | top tier |
| DA Davidson | 75% | 3/4 | 8.8% | top tier |
| Morgan Stanley | 67% | 4/6 | 0.4% | top tier |
| Baird | 50% | 3/6 | -3.7% | below average |
| Needham | 50% | 4/8 | 0.9% | below average |
| Piper Sandler | 50% | 4/8 | 0.7% | below average |
| UBS | 40% | 2/5 | -0.6% | below average |
| B of A Securities | 0% | 0/2 | -12.3% | below average |
B of A Securities has a 0% accuracy rate (0 correct out of 2 calls) with an average return of -12.3%, classifying it as a below-average firm. By contrast, top-tier firms like Scotiabank (100% on 2 calls, avg return +33.4%) and DA Davidson (75% on 4 calls, avg return +8.8%) remain bullish.
Earnings Estimates
| Period | EPS Est. | EPS Range | Revenue | Revisions (7d) |
|---|---|---|---|---|
| 0q | $-0.01 | $-0.02 — $0.01 | $93.0M | ↑1 ↓0 |
| 0y | $0.11 | $0.10 — $0.14 | $395.2M | ↑2 ↓0 |
| +1q | $0.03 | $0.02 — $0.04 | $96.3M | ↑5 ↓0 |
| +1y | $0.17 | $0.12 — $0.22 | $451.1M | ↑1 ↓0 |
Cross-Platform Signals
Insider trades: President Liu Curtis sold shares totaling $142,877 on May 4 and $506,379 in March, totaling ~$650k. No insider buys. Congressional trades: none reported. Institutional activity: Two Sigma added 49.6% ($12M), while FMR LLC trimmed 48.4% ($5.2M) and also had a separate -73.7% trim. Short interest is very high at 600,052 shares vs average volume, resulting in a short ratio of 55.3% — bearish convergence with the downgrade. Overall, insider selling and heavy short interest align with B of A's caution, but institutional buying by Two Sigma and the still-bullish analyst consensus diverge.
Investment Themes
Documents Analyzed
Report based on filing metadata.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 144 | $17.30 | awaiting T+5 | — | $17.26 (−0.23%) |
Oct 23, 2026 4d ago | 144 | $17.30 | awaiting T+5 | — | $17.26 (−0.23%) |
Oct 15, 2026 12d ago | 8-K | $14.75 $17.42 | ▲ +18.10% | ▲ +18.53% | $17.26 (+17.02%) |
Sep 14, 2026 6w ago | Insider Cluster | $13.37 $13.14 | ▲ +1.72% | ▲ +3.85% | $17.26 (−29.09%) |
Aug 8, 2026 11w ago | Institutional Cluster | $12.19 $12.61 | ▲ +3.45% | ▲ +3.49% | $17.26 (+41.59%) |
Jul 1, 2026 16w ago | ANALYST-UPGRADE | $8.55 $9.16 | ▲ +7.13% | ▲ +6.87% | $17.26 (+101.87%) |
Jun 12, 2026 19w ago | 144 | $6.84 $6.46 | ▼ −5.56% | ▼ −4.17% | $17.26 (+152.34%) |
May 7, 2026 24w ago | ANALYST-DOWNGRADE | $5.91 $5.98 | ▲ +1.18% | ▼ −0.32% | $17.26 (+192.05%) |
May 6, 2026 24w ago | 8-K | $5.91 $5.98 | ▲ +1.18% | ▼ −0.32% | $17.26 (+192.05%) |
Apr 24, 2026 26w ago | DEFA14A | $7.03 $8.04 | ▲ +14.37% | ▲ +13.97% | $17.26 (+145.52%) |
US Market Status
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