Why Are These 4 Stocks Imploding Today?

News of a slow down in sales growth for Whole Foods Market, Inc. (NASDAQ:WFM) has investors worried today, following the company’s latest financial report. The company reported a 0.2% year-over-year decrease in sales at established stores and a 6% increase in total sales, the weakest growth rate since 2010. For the three months ending September 27, 2015, Whole Foods Market announced revenues of $3.44 billion, up by 5.6% year-over-year, and earnings of $0.16 per share. Whole Foods also announced a $1 billion share buyback program and has pledged to increase its quarterly dividend by 4% to $0.135 per share.

During the second quarter, Whole Foods Market, Inc. (NASDAQ:WFM) lost some of its popularity among the funds we track, as the number of such funds that had investments in the company fell to 32, from 40 at the end of March. Jim Simons’ Renaissance Technologies held the largest stake in the company among those elite funds at the end of the second quarter, having reported ownership of 1.31 million shares. Cliff Asness is also bullish, having boosted his stake by nearly 700% to amass 844,591 shares at the end of June.

Shareholders of Lannett Company, Inc. (NYSE:LCI) are also feeling the heat, as the stock has plunged by more than 16% so far today, despite reporting better than expected results for the first quarter of its fiscal 2016. The pharmaceutical company registered $106.43 million in revenues, up by 14% year-over-year and slightly above the market’s expectations of $106.16 million, while its adjusted earnings of $0.99 per share were higher than the $0.89 projected by analysts. The stock dropped on the back of the announcement that Kremers Urban Pharmaceuticals, whom Lannett is in the process of acquiring, had lost a key customer, whose product lines accounted for $87 million of Kremers’ revenue and around $45 million of Lannett’s Pro Forma Combined Adjusted EBITDA for the last fiscal year.

At the end of the second quarter, 17 top hedge funds held a position in Lannett Company, Inc. (NYSE:LCI) and had control over 8.6% of the company’s common stock. Joel Greenblatt is betting big on this company with his fund, Gotham Asset Management, holding 1.72 million shares on June 30, up by 12% over the second quarter. Chuck Royce is also a fan, having increased his investment in the company by 177% to 429,281 shares.

Correction: This article was corrected to include the accurate adjusted and expected EPS figures for Lannett Company. 

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