Why Four of Last Night’s Biggest Losers Are Falling Further Today

Shares of Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), a provider of cellular wireless solutions, also took a hit this morning, with the company’s latest financial results coming in below analysts’ expectations. Sierra Wireless registered a 7.9% year-over-year increase in revenues to $154 million along with earnings per share of $0.23. The results, however, missed both their own forward guidance and Wall Street expectations, driving the stock 20% lower today. Because of a slowdown in the growth of its OEM solutions segment, Sierra Wireless has revised its fourth quarter projections to $148 million-to-$151 million in revenues and profits of $0.09-to-$0.11 per share.

In general, Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is not very popular among the hedge funds that we follow, with only nine of them having reported a stake in the company as of the end of June. Together they held an insignificant 2.5% of the company’s outstanding stock. In its latest 13F filing, Royce & Associates, run by Chuck Royce, reported ownership of 199,500 shares of Sierra Wireless, down by 22% over the second quarter. This was also the largest holding of the stock among the funds we track.

Another earnings report, another victim; shares of Tripadvisor Inc (NASDAQ:TRIP) have tumbled today by as much as 10% after the online provider of travel and rental services missed analysts’ estimates. The company registered a 17% increase in revenues to $415 million, lower than Wall Street estimates of $430.2 million, while earnings of $0.53 per share were just shy of expectations. Tripadvisor registered a 23% increase in costs last quarter, as it was forced to increase selling and marketing expenditure to keep up with its competitors.

At the end of the second quarter, Tripadvisor Inc (NASDAQ:TRIP) enjoyed the attention of 40 elite hedge funds, which held in aggregate roughly 10% of the company’s common stock. Ricky Sandler is bullish on this stock, with Eminence Capital having reported a 2% increase in its holding to 2.49 million shares, the largest among the funds we follow. Chase Coleman  also likes this company, having initiated a stake that amassed 1.22 million shares at the end of June.

Disclosure: None