Why Pure Storage, Davita, Ensco and 2 Other Stocks are Falling Hard Today

AK Steel Downgraded by KeyBanc

AK Steel Holding Corporation (NYSE:AKS)’s stock has tanked by over 6% as the company was downgraded to ‘Underweight’ from ‘Sector Weight’ with a $4 price target by KeyBanc Capital Markets on Friday. Last month, the Ohio-based steel company reported second quarter net income of $17.3 million, compared with a $64 million loss for the same quarter of last year. Revenue of $1.49 billion fell short of estimates of $1.53 billion, mainly due to lower automotive contract pricing and lower shipments. Kenneth Tropin’s  Graham Capital Management owns about 16 million shares of the company as of the end of June.

ENSCO’s Stock Falling Hard

ENSCO PLC (NYSE:ESV)’s stock has fallen by over 5% so far today after it reported the cancellation of a drilling contract yesterday. As the contract obligates the customer to pay it termination fees through next November, Ensco anticipates that it won’t materially affect the company’s results this year or next. Nonetheless, the cancellation is concerning to investors, as it could suggest broader weakness to come. Last month, the London-based drilling company reported second quarter EPS of $2.04 on $910 million in revenue, crushing analysts’ expectations of $1.51 in EPS on $746.55 million in revenue. Nonetheless, shares of ENSCO have been hammered so far in 2016, losing over 44%. Dmitry Balyasny’s Balyasny Asset Management owns around 7.5 million shares of the company as of the end of the June quarter.

First Majestic Silver Losing Value After Silver Prices Drop

Last on our list of today’s losers is First Majestic Silver Corp (NYSE:AG), which is down by approximately 5% following a decline in silver prices as minutes from Federal Reserve’s July meeting hinted a rate hike in the near future. Silver prices suffer in the midst of rate hike concerns as investors look for assets that provide a yield. A strong dollar is also making silver a less attractive option for foreign investors. As of the end of the second quarter, Andrew Weiss’ Weiss Asset Management owned 5.25 million shares of the Canada-based mining company.

Disclosure: None