Why Are These Stocks Falling Today?

Yesterday’s smiles turned into tears for Vera Bradley, Inc. (NASDAQ:VRA) shareholders, as the stock took a nosedive today. The stock soared yesterday as third quarter financial results beat market expectations, pushing shares up by as much as 45%. Today, however, is a new story: Standpoint Research has downgraded the stock to Hold from Buy. Shares fell by as much as 8.3% before gaining some of the lost ground and are currently trading around the $16 level.

Approximately 17% of Vera Bradley, Inc. (NASDAQ:VRA)’s stock was held by 15 top funds at the end of September, down from 16 a quarter earlier. Jim Simons‘ Renaissance Technologies, were among those looking to diminish exposure to this stock, reducing their holding by 21% to 955,300 shares. Mariko Gordon’s Daruma Asset Management, the largest holder of VRA shares in our database, has also reported a reduction in its holding to 3.56 million shares valued at $44.9 million.

Navistar International Corp (NYSE:NAV) has resumed the bearish trend, having fallen for seven consecutive days before yesterday’s breather. The stock is currently trading around the $9.90 level, down by 14% from yesterday’s closing price. It has not been an easy week for Navistar shareholders, with the stock having been downgraded on Monday to Strong Sell by Zacks Investment Research citing weak fundamentals. Today, Deutsche Bank and Cleveland Research have reiterated their Hold and Neutral ratings, respectively. Deutsche Bank has also decreased its price target to $14.00 per share, from the previous target of $17.00.

Carl Icahn and Mark Rachesky are both betting big on Navistar International Corp (NYSE:NAV), holding similar positions. In their latest 13F filing, Icahn Capital reported ownership of 16.3 million shares, while MHR Fund Managemenet reported 16.2 million shares, up by 6% over the third quarter. According to our database, 25 elite funds held roughly 51% of Navistar’s common stock at the end of September, up from 16 funds at the end of the second quarter.

Disclosure: none.