Why Are These Four Stocks Tanking Amid Today’s Rally?

U.S stocks are trending higher today following some positive economic data. Consumer prices and manufacturing output picked up after two months of decline, providing further foundation for a possible interest rate hike in December. There are several stock that have not followed the main trend and are still in red territory at noon. Let’s have a look at what is driving Osiris Therapeutics, Inc. (NASDAQ:OSIR), Dicks Sporting Goods Inc (NYSE:DKS), Urban Outfitters, Inc. (NASDAQ:URBN) and Sunedison Inc (NYSE:SUNE) lower today.

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Osiris Therapeutics, Inc. (NASDAQ:OSIR) is in hot water after Rosen Law Firm has announced an investigation on allegations of having issued misleading business information to investors. The company announced yesterday its intention to revise revenue accounting for three contracts that will lead to a decrease in revenues for 2014 fourth quarter, 2015 first and second quarter and an increase in revenues for the third quarter. Shares have plunged by as much as 30% this morning and are currently trading at $11.44 apiece.

Mitchell Blutt, the manager of Consonance Capital Management, is bullish on Osiris Therapeutics, Inc. (NASDAQ:OSIR), having boosted his stake by 73% to 2.03 million shares worth $37,6 million. Julian Baker and Felix Baker have made no change to their investment in Osiris and their fund, Baker Bros. Advisors, continues to hold 499,193 shares, now worth $9.22 million.

The slump at Dicks Sporting Goods Inc (NYSE:DKS)‘s Golf Galaxy has continued in the third quarter, while sales at its namesake stores barely improved. The company’s latest round of financial results has been disappointing, missing analyst estimates. Third-quarter sales stood at $1.64 billion, below estimates of $1.67 billion, while earnings, adjusted for non-recurring costs, of $0.45 per share missed the Street’s expectations of $0.46 per share. The stock fell off a cliff this morning, tanking by as much as 18% before recovering some of the lost ground to $37.03 per share.

Cliff Asness believes Dicks Sporting Goods Inc (NYSE:DKS) is a good buy on a dip, having upped his stake during the third quarter. His fund, AQR Capital Management, reported a 28% increase in its holding of the stock to 1.53 million shares valued at $75.8 million. Dmitry Balyasny changed his mind and started buying the stock again during the quarter, taking his position to 874,620 shares worth approximately $43.4 million.

Shares of Urban Outfitters, Inc. (NASDAQ:URBN) are also deep in the red today, after a disappointing earnings report. The apparel retail company has only managed to meet profit estimates, posting earnings of $0.42 per share. Revenues came in at $825 million, significantly lower than analysts’ estimates of $870 million. While investors are not pleased and are driving the stock lower, Urban Outfitters CEO Richard Hayne is trying to soothe them, pointing to the fact that margins and profits grew during the third quarter, despite “weaker customer traffic.”

Steven Cohen and Israel Englander have changed their minds about Urban Outfitters, Inc. (NASDAQ:URBN) during the third quarter and have taken drastic measure to reduce exposure to the stock. Cohen has dumped the entire position, having held 1.14 million shares at the end of June. Englander’s Millennium Management reported a 86% decrease in its holding to just 175,478 shares worth $5.15 million.

Sunedison Inc (NYSE:SUNE) has continued its slide this morning, fueled by news that major hedge funds have been reducing their holding of the stock. It traded as high as $33.45 in July, but got murdered in the August sell off, falling below the $4 level today. There seems to be no light at the end of the tunnel as Sunedison’s recent financial results have provided no comfort. The third quarter loss widened to $0.79 per share, while revenues registered a minor, 1.5% rise to $476 million.

A year ago Davin Einhord was a major supporter of Sunedison Inc (NYSE:SUNE) and was tipping the stock to reach $35 a share. Now, he’s decided it’s time to cut losses and has dumped a quarter of his stake during the third quarter. As reported in its latest 13F filing, Greenlight Capital now holds 18.6 million shares, down from 24.8 million shares reported at the end of June. Dan Loeb went even further than that and has liquidated his entire investment. At the end of June, his fund, Third Point, held 12.4 million shares.

Disclosure: none.