Loop Capital downgraded MDB to “hold” from “buy”

Software stock MongoDB Inc (NASDAQ:MDB) is down 1.5% at $186.09 at last glance, after a downgrade from Loop Capital to “hold” from “buy,” with a steep price-target cut to $190 from $350. The firm sees slowing adoption of the company’s artificial intelligence (AI) platform Atlas, with limited potential for progress in the near future. 

On the charts, MongoDB stock has been slowly climbing since its April 7 two-year low of $140.78, though the $200 level, which rejected the shares in March and earlier this month, still lingers above. Since the start of the year, MDB is down roughly 20%. 

The majority of analysts are still bullish on the stock. Twenty-seven of the 37 in coverage carry a “buy” or better rating, while the 12-month consensus price target of $273.14 sits at a 45% premium to current levels. Should MDB continue to struggle, analysts may be forced to adjust their tune, which could in turn weigh on the equity even more. 

Options traders have been bullish over the last 10 weeks as well. MDB’s 50-day call/put volume ratio of 2.19 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 97% of readings from the past year. 

Options are an intriguing route, regardless of direction. MDB’s Schaeffer’s Volatility Scorecard (SVS) of 90 out of 100 indicates it has exceeded options traders’ volatility expectations over the past year.