10 Stocks Investors Are Dumping

Ten stocks capped off Monday’s trading with losses, amid company-specific developments that sparked investor selling.

Meanwhile, Wall Street finished mixed, with the Dow Jones the sole loser by 0.14 percent. The Nasdaq and the S&P 500 both ended up by 0.71 percent and 0.36 percent, respectively.

In this article, we identified the 10 worst-performing mid-cap stocks on Monday and broke down the reasons behind their decline.

To come up with the list, we focused exclusively on mid-cap stocks with more than $2 billion in market capitalization and 5 million shares in trading volume.

The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels

10. Rocket Companies Inc. (NYSE:RKT)

Rocket Companies extended its losing streak to a third straight day on Monday, shedding 4.83 percent to close at $16.94 apiece as investors continued to digest the completion of its acquisition of Mr. Cooper Group for $14.2 billion.

Last Wednesday, Rocket Companies Inc. (NYSE:RKT) announced that it officially merged with Mr. Cooper Group, bringing together one of the leading home loan and mortgage service providers in the US.

Following the news, shares of Rocket Companies Inc. (NYSE:RKT) began to decline to have already lost 13.5 percent in just the past three trading days.

The drop may have also been influenced by a leadership change in Rocket Mortgage, with Mr. Cooper CEO Jay Bray emerging as its new president and CEO, directly reporting to Rocket Companies Inc. (NYSE:RKT) CEO Varun Krishna. Bray will also join the listed firm’s board of directors.

Lastly, part of the acquisition will also rebrand Mr. Cooper and all its servicing functions to those under the Rocket umbrella.

9. Starbucks Corp. (NASDAQ:SBUX)

Starbucks dropped for a second day on Monday, slashing 4.99 percent to finish at $82.11 apiece as investors unloaded portfolios to mitigate risks from development uncertainties, following news of workforce reduction and key leadership changes.

Over the past few days, Starbucks Corp. (NASDAQ:SBUX) Chief Executive Officer Brian Niccol announced that the company would close underperforming stores in the US, cut 900 non-retail partner roles, and freeze a number of job positions as part of its turnaround strategy.

Following a review of its North America portfolio, Niccol told employees that they were able to identify locations that were unable to create the physical environment our customers and partners expect,” and where it does not see a “path to financial performance.”

Niccol did not elaborate on the number of stores to be closed, but said that affected stores and employees will be notified immediately.

In other developments, Starbucks Corp. (NASDAQ:SBUX) announced that its chief technology officer, Deb Hall Lefevre, stepped down from her role without a permanent replacement. She will be temporarily replaced by Ningyu Chen, previously senior vice president of global experience technology.

Lefevre’s resignation followed announcements of a second round of deep cuts in corporate roles as Niccol pushes a technology revamp to make labor more efficient.