What Is Going On With These Falling Stocks?

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Rayonier Advanced Materials Inc (NYSE:RYAM) fell by more than 11% after the analysts at RBC Capital Markets downgraded the company to ‘Underperform’ from ‘Sector Perform’. The analysts also cut their price target to $9 per share from $10 per share. Rayonier Advanced Materials Inc (NYSE:RYAM) shares have fallen over 45% year-to-date on bearish investor sentiment. Because of the decline, RYAM now trades for a modest 12 times forward earnings. A total of 20 elite funds were long RYAM in the third quarter, up from 16 funds in the second quarter.

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Not to be left out, NRG Energy Inc (NYSE:NRG) shares retreated by another 17% on Friday as the stock remains volatile after the power company’s CEO David Crane resigned on Thursday. Crane has run NRG Energy Inc (NYSE:NRG) since 2003 and will be replaced by former COO Mauricio Gutierrez. NRG shares were down 58% year-to-date before today’s news due to its rising cost of capital. Despite the poor performance, the hedge fund interest in NRG Energy remained steady, with 31 funds long the stock at the end of September, unchanged from the number of funds long the stock at the end of June. Among the bullish funds is George Soros’ Soros Fund Management, with a stake of 4.32 million shares.

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Disclosure:None

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