In this article, we will discuss some of the notable stocks getting hammered today. To take a look at some more stocks that are moving down, go to 5 Stocks Getting Hammered on Friday.
All the three prominent US market indices are in the green for the fourth consecutive day, and the markets are on their way to closing the week on a positive note following the first increase in interest rate by the Federal Reserve since 2018. However, companies like Centerra Gold Inc. (NYSE:CGAU), Ambac Financial Group, Inc. (NYSE:AMBC), and TransUnion (NYSE:TRU) appear to be moving in the opposite direction to the market.
Let’s look at the reasons the stocks are declining today and discuss how hedge funds are positioned in them.
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10. FedEx Corporation (NYSE:FDX) is down over 4.2% as of 11:15 AM ET after the Memphis, Tennessee-based freight and logistics company missed the consensus EPS estimates for Q3 2022. EPS for the three months was posted at $4.49 and fell short of the analysts’ estimate of $4.65. FedEx Corporation (NYSE:FDX) has been under pressure due to labor shortages in the US, and the package volume has been lower than expected. However, higher pricing is aiding the company in fighting these headwinds. Sales were recorded at $23.6 billion and surpassed the consensus estimate of $23.5 billion. Of the 924 hedge funds in Insider Monkey’s database, 64 funds held a stake in FedEx Corporation (NYSE:FDX) as of Q4 2021.
9. Wingstop Inc. (NASDAQ:WING) has fallen 5.1% as of 11:36 AM ET after the Addison, Texas-based restaurant received a double downgrade from an Overweight to an Underweight rating from Nicole Miller at Piper Sandler. Moreover, the analyst revised the target price from $195 to $102. Miller anticipates Wingstop Inc. (NASDAQ:WING) stock to experience significant resistance in obtaining the premium valuation, in terms of multiples, in the middle of a restaurant industry expansion cycle. Overall, 18 hedge funds held a position in Wingstop Inc. (NASDAQ:WING) as of Q4 2021. Terry Smith-led Fundsmith LLP is the leading hedge fund investor in the company, with a stake of $97.49 million.
8. Cummins Inc. (NYSE:CMI) has lost 2.7% of its value as of 11:42 AM ET after the diesel, natural gas engine manufacturer, and distributor received a downgrade in rating earlier today. Steven Fisher at UBS downgraded Cummins Inc. (NYSE:CMI) from a Buy to a Neutral rating and slashed the target price from $260 to $214. The analyst highlighted that investors anticipate next year as the peak year for the North American trucking industry, and the EPS multiple will fall back to its historical peak multiple of 9x to 10x. The number of hedge funds invested in Cummins Inc. (NYSE:CMI) stands at 40 as of Q4 2021, up from 30 in the previous quarter.
7. United States Steel Corporation (NYSE:X) has fallen 5.1% as of 11:26 AM ET after the Pittsburgh, Pennsylvania-based steel manufacturing company issued Q1 2022 guidance following the closing bell yesterday. United States Steel Corporation (NYSE:X) anticipates adjusted EPS to be between $2.96 to $3, compared to the Q4 2021 adjusted EPS of $3.64 and the consensus estimate of $3.77. In the guidance, United States Steel Corporation (NYSE:X) highlighted that due to rising spot steel prices and geopolitical situations, there is an increase in backlog at the company’s Big River Steel operations. As of Q4 2021, 39 hedge funds had a holding in United States Steel Corporation (NYSE:X). D E Shaw was long over 7 million shares of United States Steel Corporation (NYSE:X) at the end of Q4 2021.
6. JOANN Inc. (NASDAQ:JOAN) has declined over 10% as of 11:59 AM ET after Peter Keith at Piper Sandler downgraded the stock from an Overweight rating to a Neutral rating and also revised the target price from $12 to $11. The analyst thinks that the revenue guidance provided by the Hudson, Ohio-based specialty retail company is unfavorable as comparable sales have fallen by another 5% in the past few weeks. Furthermore, the gross profit margin is expected to feel headwinds due to rising contracted ocean freight rates well into 2023. Out of the 924 hedge funds tracked by Insider Monkey, 15 hedge funds held a stake in JOANN Inc. (NASDAQ:JOAN) at the end of Q4 2021.
In addition to JOANN Inc. (NASDAQ:JOAN), some of the companies experiencing a swing in stock price today include Centerra Gold Inc. (NYSE:CGAU), Ambac Financial Group, Inc. (NYSE:AMBC), and TransUnion (NYSE:TRU).
5. Becton, Dickinson, and Company (NYSE:BDX) has decreased 1.2% as of 12:17 PM ET after Jayson Bedford at Raymond James resumed coverage on the stock with a Neutral rating and without a formal target price. The analyst is waiting for a more attractive entry point in the stock of the New Jersey-based medical instruments and supplies corporation. Bedford further added that the company’s growth profile is supported by the YTD outperformance relative to other medical technology companies and its current valuation. At the end of Q4 2021, 54 hedge funds reported owning a stake in Becton, Dickinson, and Company (NYSE:BDX), up from 51 in the last quarter.
4. Ambac Financial Group, Inc. (NYSE:AMBC) has recorded a sharp decline of 22% as of 12:23 PM ET. The New York-based specialty insurance company revealed that a recent court ruling related to the breach of a contract case in connection to its insured residential mortgage-backed securities (RMBS) transactions against Ambac Assurance Corp could significantly impact the organization. Of the 924 hedge funds in Insider Monkey’s database, 16 reported owning a stake in Ambac Financial Group, Inc. (NYSE:AMBC) as of Q4 2021.
3. TransUnion (NYSE:TRU) is down over 1% as of 12:33 PM ET after the Chicago, Illinois-based risk and information solution provider was downgraded by George Tong at Goldman Sachs from a Buy to a Neutral rating. The analyst thinks the stock price would remain range-bound in the short term following the margin dilutive acquisition of Neustar and due to the expectation of lower mortgage origination in the US, impacted by macroeconomic and geopolitical circumstances. However, Tong also highlighted the strong international growth prospects and potential for gaining market share as some of the catalysts for TransUnion (NYSE:TRU). On a sequential basis, the number of hedge funds holding a position in TransUnion (NYSE:TRU) decreased from 38 in the third quarter to 34 in Q4 2021.
2. Eni S.p.A (NYSE:E) has crashed 3.3% as of 12:39 PM ET after the European integrated oil and gas company reduced its planned growth of upstream production from 4% previously to 3% every year until 2025. This was revealed by Eni S.p.A (NYSE:E) in an updated capital markets strategy issued earlier today. Furthermore, Eni S.p.A (NYSE:E) also announced that it intends to spin off Plenitude, the renewable energy and retail business arm of the energy giant. The Rome, Italy-based oil major is in the portfolio of only three hedge funds as of Q4 2021.
1. Centerra Gold Inc. (NYSE:CGAU) is down over 4.4% as of 12:54 PM ET after the company revealed it has temporarily suspended the production of gold bars at its Oksut mine in Turkey. This step was taken after mercury was detected in some parts of the plant. Centerra Gold Inc. (NYSE:CGAU) further added that it is making significant efforts in preventing exposure at the mine by clearing the mercury from the affected areas. The company has also implemented safety protocols and is looking into how mercury can be removed from the gold recovered from the mine. Despite this interference, the mining process of ore is still going on. The company is assessing the impact of the closure on its final guidance for 2022. As of Q4 2021, Centerra Gold Inc. (NYSE:CGAU) was in the portfolio of nine hedge funds.
You can also take a peek at the 10 Best Index Funds to Invest In 2022 and Top 10 Stock Picks of Anand Parekh’s Alyeska Investment Group.
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Disclose. None. 10 Stocks Getting Hammered on Friday is originally published on Insider Monkey.
