Just How Negative is BofA Merrill Following Their Downgrade of Teekay Offshore (NYSE:TOO)?

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Teekay Offshore (NYSE:TOO) Receives a Downgrade

Shares of New York-listed Teekay Offshore (NYSE:TOO) Have been downgraded by investment analysts at BofA Merrill. BofA Merrill cut their rating for the $764.47 million market cap company to a “Underperform” from their previous “Neutral” rating.

From a total of 7 analysts covering Teekay Offshore (NYSE:TOO) stock, 3 rate it a ”Buy”, 0 a “Sell”, and 5 a ”Hold”. This means that 38% of the ratings are positive. The highest target price is $28 while the lowest target price is $14. The mean of all analyst targets is $20.43 with a 417.65% above today’s ($4.25) stock price. Teekay Offshore was the topic of 3 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on August 13 with “Sector Perform” rating. Global Hunter Securities upgraded TOO stock in a recent report from August 4 to “Accumulate” rating.

Approximately 3.10M shares of stock traded hands or 499.02% up from the average. Teekay Offshore Partners L.P. (NYSE:TOO) has declined 64.91% since May 14, 2015 and is downtrending. It has underperformed by 62.65% the S&P500.

The overall sentiment of institutions has increased to 1.13 in Q2 2015. Its up 0.05, from 1.08 in 2015Q2. The ratio is positive, as 10 institutions have sold all the shares of Teekay Offshore Partners L.P. that they owned while 29 funds have taken shares off the table. 15 funds have purchased shares for the first time while 29 added to their positions. These institutions now hold 54.47 million shares or 9.73% more than the 49.64 million shares they owned in 2015Q2.

The Fund Berson & Corrado Investment Advisors Llc currently is holding shares equating to 2.25% of its total portfolio in Teekay Offshore Partners L.P. representing a total of 276,028 shares. Another fund,Evergreen Capital Management Llc, is holding a total of 470,082 shares equating to 1.76% of their holdings. Additionally, Advisory Research Inc has a 6.79 million share stake in Teekay Offshore Partners L.P. which represents 1.39% of their total portfolio. The Fund, Ronna Sue Cohen, based out of Utah, has also built up a stake in the stock, which represents a total of 1.16% of their total portfolio. Finally Avenir Corp, a fund which is based in the state of reported a total holdings of 897,464 shares.

Teekay Offshore Partners L.P. is a provider of marine transportation, oil production, storage, towage and floating accommodation services to the offshore oil industry focusing on the fast-growing, deep-water offshore oil regions of the North Sea and Brazil. The company has a market cap of $764.47 million. The Firm operates shuttle tankers, floating production, storage and off-loading units, floating storage and off-take (FSO) units, and conventional crude oil tankers. It currently has negative earnings. As of December 31, 2014, the Company’s fleet consisted of 34 shuttle tankers, including two chartered-in vessels and one HiLoad Dynamic Positioning (DP) unit; seven FPSO units, including the Libra FPSO and the Petrojarl I FPSO conversion and upgrade projects; six FSO units, and four conventional oil tankers, in which its interests range from 50% to 100%.

According to Zacks Investment Research, “TEEKAY OFFSHORE PARTNERS L.P. is a publicly-traded master limited partnership formed by Teekay and is an international provider of marine transportation and storage services to the offshore oil industry. Teekay Offshore currently owns a twenty six percent interest in and controls OPCO with a fleet of thirty four shuttle tankers (nine of which are chartered-in), four floating storage and offtake units and nine conventional crude oil Aframax tankers. The Partnership also has direct ownership interests in two shuttle tankers and one FSO.”

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