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.

Why Are These Five Stocks Sinking Today?

Page 1 of 2

The US stock market is trading slightly in the green territory amid positive news from China and following solid employment figures, but shares of American Eagle Outfitters (NYSE:AEO), Barracuda Networks Inc (NYSE:CUDA), Collegium Pharmaceutical Inc (NASDAQ:COLL), Kinross Gold Corporation (USA) (NYSE:KGC) and Barrick Gold Corporation (USA) (NYSE:ABX) are trading significantly lower than their yesterday’s closing prices. So let’s take a look at the news surrounding these stocks today and see the hedge fund sentiment towards them.

Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 53 percentage points, returning over 102% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

The first on the list is American Eagle Outfitters (NYSE:AEO), whose stock has plummeted by 15% after the company announced that fourth-quarter same-store sales rose by 4%, which is below the consensus estimate of 4.9%. Moreover, the retailer expects to report earnings per share between $0.40 and $0.42 for the fourth quarter, which is below the consensus estimate of $0.43. American Eagle Outfitters (NYSE:AEO) has gained popularity in the third quarter and, out of the 730 funds that we track, 40 funds held shares of the company on September 30, amassing 16.2% of the float. Chuck Royce’s Royce & Associates has the most valuable position in American Eagle Outfitters, worth $71.23 million at the end of September.

Follow American Eagle Outfitters Inc (NYSE:AEO)
Trade (NYSE:AEO) Now!

Barracuda Networks Inc (NYSE:CUDA)’s shares are down by around 33% today on the back of the company reporting its financial results for the third quarter of fiscal 2016, ended November 30. The company posted adjusted EPS of $0.07, missing the estimates by $0.01, while its revenue of $80.1 million was higher than the $70.4 million figure reported a year earlier, but below the consensus estimate of $84.43 million. Following the results, the company was downgraded by six analysts, and other four lowered their price targets. Among the funds we follow, 14 reported long positions in Barracuda Networks Inc (NYSE:CUDA) as of the end of September, down by two funds from a quarter earlier. George McCabe‘s Portolan Capital Management reported holding 512,866 shares, worth $7.99 million, in its latest 13F filing.

Follow Barracuda Networks Inc (NYSE:CUDA)
Trade (NYSE:CUDA) Now!

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!