Investor Confidence Is Turning Sharply Against These 2 Stocks

FireEye Inc (NASDAQ:FEYE) meanwhile was downgraded to ‘Neutral’ from ‘Overweight’ by Piper Jaffray, which also slashed its price target on the stock to $37 from $60, which nonetheless still represented upside potential of over 10% from Friday’s closing price. Regardless, shares have tumbled by 5.70% in morning trading on the downgrade, as Piper Jaffray cited concerns over increased competition for the cybersecurity firm, including the fact that the top four cybersecurity vendors now have their own sandbox security technology. Piper Jaffray also expressed concern over the recent executive departures at the firm, which includes Chief Financial Officer Mike Sheridan and Chief Technology Officer Greg Day.

Hedge funds tracked by Insider Monkey were also moving out of FireEye Inc (NASDAQ:FEYE) with some conviction during the second quarter, as the number of investors with positions fell to 35 from 43, while the aggregate value of their positions dropped to $420 million from $573 million, despite the stock actually making strong gains of nearly 25% during the second quarter. That dropped their ownership of the stock down to 5.50%, a decline of over 40%. Karthik Sarma’s SRS Investment Management maintained a positive outlook on FireEye, slightly bulking up its position to over 3.29 million shares. On the other hand, John Thaler’s JAT Capital Management hastily closed its position of 1.74 million shares which it had just opened in the first quarter.

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