Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

NuVasive, Basic Energy Services, Mariott Vacations Worldwide: Why Did These Three Stocks Get Slammed Today?

Page 1 of 2

The stock market is up sharply today, yet there were several stocks with disappointing performance. Three stocks that disappointed investors today with their sharp declines included Marriott Vacations Worldwide Corp (NYSE:VAC), NuVasive, Inc. (NASDAQ:NUVA), and Basic Energy Services, Inc (NYSE:BAS). Besides closely looking at the varied reasons contributing to the downswing of these stocks we will also examine which investors bore the largest brunt of these declines.


In its financial results for the third quarter ending on September 11, Marriott Vacations Worldwide Corp (NYSE:VAC) delivered an EPS of $0.82, compared to the analysts’ estimate of $0.87. Revenue of $407.1 million also came in $24.73 million short of expectations. Even though the $2.42 billion global pure-play vacation ownership company raised its full year EPS guidance range to between $3.33 and $3.52 from $3.29 to $3.48, it wasn’t enough to assuage the investors leading to a slump of 15% in the company’s stock price today. The main catalyst for this was perhaps the announcement of Marriott Vacations Worldwide Corp (NYSE:VAC)’s management that it expects the full year contract sales to be flat or post a 2% increase. This was in sharp contrast to the 5% to 8% rise in sales previously expected by the company.

Follow Marriott Vacations Worldwide Corp (NYSE:VAC)
Trade (NYSE:VAC) Now!

Among over 700 hedge funds that we track at Insider Monkey the interest in Marriott Vacations Worldwide Corp (NYSE:VAC) declined during the second quarter as a total of 14 funds had investments worth $25.58 million in the company, representing 0.9% of Marriott’s total market cap, as compared to 17 firms with $42.21 million held in shares at the end of March. David Shaw‘s D E Shaw headed this list after a 24% surge in its holding during the second trimester.

We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received. We have been tracking the performance of hedge funds’ 15 most popular small-cap stock picks in real time since the end of August 2012. These stocks have returned 102% since then and outperformed the S&P 500 Index by around 53 percentage points (see the details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.

Shares of the $2.48 billion medical device company for spine related treatments, NuVasive, Inc. (NASDAQ:NUVA), fell by almost 8% in the early trading, but gained back some ground and were down by about 3% in mid afternoon. The development didn’t come on the back of nay significant news. Conaccord Genuity recently upgraded the company to a ‘Buy’ rating from ‘Hold’ and increased its price target to $58 from $52. NuVasice will release its third quarter financial results at the end of this month.

Follow Nuvasive Inc (NASDAQ:NUVA)
Trade (NASDAQ:NUVA) Now!

Israel Englander‘s Millennium Managed topped our list of NuVasive, Inc. (NASDAQ:NUVA)’s investors as it held over 2 million shares valued at $95.20 million at the end of June.

On the next page we have the energy company, which faced yet another bad day on the market.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!