In this article, we will take a look at the 10 biggest losers today.
U.S. stocks extended their rally after the opening bell on Tuesday. As of 12:58 PM ET, S&P 500 was positive 1.14 percent, Dow Jones Industrial Average was up 1.06 percent and Nasdaq Composite rose 0.98 percent. The surge was partly driven by better-than-expected earnings of large-cap companies, including Lockheed Martin Corporation (NYSE:LMT) and The Goldman Sachs Group, Inc. (NYSE:GS).
Shares of Lockheed Martin Corporation and The Goldman Sachs Group, Inc. rose after beating earnings expectations for Q3. However, financial stocks, including Truist Financial Corporation (NYSE:TFC) and Silvergate Capital Corporation (NYSE:SI), fell today following their weak quarterly performance.
In addition, chip giant Intel Corporation (NASDAQ:INTC) and social media behemoth Meta Platforms, Inc. (NASDAQ:META) were also spotted losing value this morning. We will talk about the reasons behind the downward movement of these stocks in the remaining article.
Photo by Ruben Sukatendel on Unsplash
10. ServisFirst Bancshares, Inc. (NYSE:SFBS)
Number of Hedge Fund Holders: 10
Shares of ServisFirst Bancshares, Inc. (NYSE:SFBS) fell to a nearly three-month low after the opening bell on Tuesday. The drop followed the bank holding company’s lower-than-expected earnings for the third quarter.
ServisFirst Bancshares, Inc. earned $1.17 per share during the three months ended September 30, up 22 percent versus the year-ago period but below the expectations of $1.23 per share.
Net interest income increased to $126.4 million, from $96.3 million in Q3 of 2021. In comparison, non-interest income rose 11.4 percent on a year-over-year basis to $8.9 million in the quarter.
Among other updates, ServisFirst Bancshares, Inc. reported that average loans climbed 25.8 percent versus last year to $10.92 billion in the quarter. On the other hand, average total deposits inched up 0.4 percent to $11.53 billion.
9. Marten Transport, Ltd. (NASDAQ:MRTN)
Number of Hedge Fund Holders: 11
Shares of Marten Transport, Ltd. (NASDAQ:MRTN) slipped over two percent in pre-market trading Tuesday after the provider of temperature-sensitive transportation services missed profit expectations for the third quarter.
Marten Transport, Ltd. reported earnings of 32 cents per share, up from 26 cents per share in the year-ago period. However, the numbers were marginally below the consensus of 33 cents per share. The company’s senior management blamed Hurricane Ian and a drop in its intermodal volumes for the weakness.
On the bright side, Marten Transport, Ltd. posted revenue of $324.4 million, up 29.1 percent on a year-over-year basis and above analysts’ average estimate of $321.41 million.
8. Conn’s, Inc. (NASDAQ:CONN)
Number of Hedge Fund Holders: 12
Shares of Conn’s, Inc. took a deep dive this morning, losing more than 20 percent of their value. The drop came after the home goods retailer announced the departure of its CEO, besides offering a weak sales outlook for Q3.
Conn’s, Inc. reported that its chief executive officer Chandra Holt has decided to step down. The company added that former president Norman Miller would become the interim CEO, effective immediately.
Meanwhile, Conn’s, Inc. now expects its Q3 sales to drop in the range of 21 – 23 percent on a year-over-year basis. The outlook is worse than analysts’ average estimate for a drop of 19.6 percent.
Like Conn’s, Inc., Lockheed Martin Corporation, The Goldman Sachs Group, Inc. and Intel Corporation were also trending today.
7. Silvergate Capital Corporation (NYSE:SI)
Number of Hedge Fund Holders: 23
Shares of Silvergate Capital Corporation plummeted to a nearly three-month low this morning after the crypto-focused bank posted a lower-than-expected profit for the third quarter.
Silvergate Capital Corporation reported earnings of $1.28 per share, up from 88 cents per share in the year-ago quarter, but below analysts’ average estimate of $1.40 per share.
In addition, Silvergate Capital Corporation said its net interest income totaled $84.7 million, up from $39 million in the corresponding period of 2021. However, it was below the consensus of $87.6 million.
6. Hasbro, Inc. (NASDAQ:HAS)
Number of Hedge Fund Holders: 30
Shares of Hasbro, Inc. (NASDAQ:HAS) slid over three percent before the opening bell today. The drop came after the Rhode Island-based company delivered mixed results for the third quarter.
Hasbro, Inc. earned $1.42 per share on an adjusted basis, well below $1.96 per share in the corresponding period of 2021. The entertainment company primarily took a hit from tougher comparisons, elevated inflation and a strong dollar.
Revenue for the quarter also dropped 15 percent versus last year to $1.68 billion. Analysts expected Hasbro, Inc. to post earnings of $1.52 per share on revenue of $1.68 billion.
Speaking on the results, CEO Chris Cocks said in a statement:
“As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer. To achieve our full-year outlook, we are projecting Hasbro’s fourth-quarter revenue to be approximately flat versus last year on a constant currency basis with particular strength from our Wizards and Digital Gaming segment.”
5. Darling Ingredients Inc. (NYSE:DAR)
Number of Hedge Fund Holders: 33
Shares of Darling Ingredients Inc. (NYSE:DAR) fell nearly three percent this morning after disclosing that it would acquire gelatin and collagen producer Gelnex in a cash transaction valued at $1.2 billion.
Darling Ingredients Inc. expects to close the deal in the first quarter of 2023. The acquisition will help the company to capitalize on the rapidly growing collagen market. Gelnex, which employs around 1,200 employees, exports collagen products to more than 60 countries across the globe.
Speaking on the development, CEO of Darling Ingredients Inc., Randall C. Stuewe, said:
“Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increases our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide.”
4. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 33
Truist Financial Corporation managed to meet earnings expectations for the third quarter. However, its Q3 revenue fell short of estimates, sending its shares down more than three percent in mid-day trading Tuesday.
The Charlotte-based financial services company earned $1.24 per share on an adjusted basis, down 13 percent versus the year-ago quarter but in line with expectations. Revenue for the quarter rose 4.6 percent on a year-over-year basis to $5.847 billion, while analysts expected Truist Financial Corporation to generate revenue of $5.94 billion.
Speaking in the results, CEO of Truist Financial Corporation, Bill Rogers, said in a statement:
“Truist’s third-quarter performance reflected strong progress in many areas of the business, as we delivered strong broad-based loan growth, significant margin expansion and continued exceptional asset quality. Overall financial results were mixed, however, as the challenging market environment impacted our capital markets related revenue.”
3. Signature Bank (NASDAQ:SBNY)
Number of Hedge Fund Holders: 38
Shares of Signature Bank (NASDAQ:SBNY) turned red in pre-market trading Tuesday despite beating profit expectations for the third quarter. The full-service commercial bank reported earnings of $5.57 per share, above the consensus of $5.44 per share.
Signature Bank attributed the results to net interest income, which increased to $674 million, representing a jump of about 40 percent over the same quarter of 2021.
In addition, Signature Bank said total deposits stood at $114.47 billion at the end of Q3, compared to $107.85 billion in the corresponding period of 2021.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 65
Shares of Intel Corporation slipped nearly three percent in mid-day trading Tuesday following the news that its self-driving unit Mobileye Global is now looking to achieve a valuation of around $16 billion in the IPO. That’s significantly down from the initial expectations of about $50 billion.
Intel Corporation reportedly cut the expected valuation of the unit due to unstable market conditions. The chipmaker acquired Mobileye back in 2017 for $15 billion. The latest valuation target suggests the company will not be getting any significant return on its investment.
Meanwhile, Intel Corporation has struggled to meet market expectations this year. It missed financial estimates for the second quarter. Many expect a similar performance from the chip giant when it posts its Q3 results later this month.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Shares of Meta Platforms, Inc. slightly moved down in mid-day trading Tuesday apparently after the U.K.’s competition watchdog ordered the company to sell animated search platform Giphy.
The Competition and Markets Authority (CMA) owning Giphy could allow Meta Platforms, Inc. to restrict the access of smaller social media sites to GIFs, making them less competitive.
Separately, Meta Platforms, Inc. appeared in the third-quarter 2022 investor letter of investment management firm Wedgewood Partners. Here’s what the firm said:
“Meta Platforms, Inc. (NASDAQ:META) detracted from performance during the quarter. Meta’s advertising revenue grew +3% (currency-adjusted) over 2021 and is up +70% since 2019 (pre-pandemic). The shift of advertisers and consumers to social media has been fairly dramatic and sticky. The Company reported $2.88 billion “daily active people” of its Family of Apps (as of June 2022) and is +35% higher than the comparable month pre-COVID (June 2019). Meta also serves over 10 million advertisers which is up from 8 million in January 2020. In spite of these impressive gains, the stock now trades at absolute levels well below where it traded before the pandemic. We suspect much of the market’s concern revolves around slowing revenue growth. It is fairly evident that there was a tremendous pull-forward of demand for many businesses and services over the past couple of years, and that the normalization of revenue growth from that “pull-forward” is hardly an existential crisis. Further, while Meta’s profit margins have fallen below pre-pandemic levels, it’s important to note that the Company likely hired well in excess of what it needed because it assumed the pandemic induced growth would continue. Meta has plenty of room to moderate its expense base and drive significant value by repurchasing shares at today’s historically depressed multiples.”
You can also take a peek at Best Asian Stocks To Buy and 13 Best Cybersecurity Stocks To Buy.
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This article is originally published at Insider Monkey.
