In this article, we deep dive into the 5 stocks that fell sharply on Monday. For a deeper discussion and an extended list, please see 10 Stocks Entering June in the Wrong Direction.
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5. Sable Offshore Corp. (NYSE:SOC)
Sable Offshore fell by 11.13 percent on Monday to close at $13.02 apiece, as investors turned cautious over its pipeline operations in California after lawmakers launched an inquiry to look into offshore drilling.
This followed a letter dated May 27 to Sable Offshore Corp. (NYSE:SOC) seeking an explanation over its push to restart oil production off the Santa Barbara coast, and for its efforts to use the Defense Production Act (DPA) to help resume operations.
The lawmakers argued that the federal law is being stretched well beyond its intended purpose, saying that the Trump administration’s use of the DPA appears to be linked to Sable Offshore Corp.’s (NYSE:SOC) request to resume offshore oil activity despite objections and legal issues.
The company was also asked to provide internal records and communications dating from January 2024, including contacts with the White House, Department of Energy officials, Trump campaign operatives, and outside intermediaries.
President Donald Trump’s Cabinet officials, Energy Secretary Chris Wright, Interior chief Doug Burgum, and Transportation Secretary Sean Duffy, are also set to visit Sable Offshore Corp.’s (NYSE:SOC) oil project later this week to discuss the legal strategies in its ongoing dispute with California authorities.
It can be learned that operations at its offshore unit, Santa Ynez, have already started in May, but Sable Offshore Corp. (NYSE:SOC) remains unable to sell or transport hydrocarbons through its Las Flores unit amid legal issues.
4. Intuitive Machines Inc. (NASDAQ:LUNR)
Intuitive Machines saw its share prices decline by 12.82 percent on Monday to close at $38.21 apiece, as investors disposed of positions in space stocks following a rocket explosion over the weekend.
The company fell alongside its space counterparts, namely Planet Labs PBC, Rocket Lab Corp., and Intuitive Machines, among others, following the explosion of Blue Origin’s New Glenn rocket on Friday while undergoing a hot-fire engine test at its launch pad in Florida.
The explosion sent shockwaves to residents of Florida equivalent to a 2.5 magnitude earthquake.
Investors were quick to dispose of positions in space companies following on caution over the safety of rocket launches.
The drop followed last week’s flurry of positive developments across the space industry after the National Aeronautics and Space Administration announced the awarding of contracts to a number of space players for its ambitious lunar exploration program.
In other news, Intuitive Machines Inc. (NASDAQ:LUNR) earlier last month snatched two new contracts amounting to $20 million, which involve the operations of NASA’s Lunar Reconnaissance Orbiter Camera and the ShadowCam instrument aboard the Korea Pathfinder Lunar Orbiter.
Under the contract, Intuitive Machines Inc. (NASDAQ:LUNR) said that it would provide a number of services, including imaging operations, data storage and analysis, and mission support.
3. Alignment Healthcare Inc. (NASDAQ:ALHC)
Alignment Healthcare extended its losing streak to a 7th straight session on Monday, slashing 13.19 percent to finish at $13.30 apiece, as investor sentiment was further weighed by an investment firm’s price target downgrade last week.
In a market note, Barclays slashed its price target for Alignment Healthcare Inc. (NASDAQ:ALHC) to $16 from $19 previously, while reaffirming an equal weight rating.
The coverage was based on stock moves in the first quarter of the year, which it deemed unlikely to reverse quickly.
Apart from Barclays, Raymond James also lowered its price target for Alignment Healthcare Inc. (NASDAQ:ALHC) earlier last month despite maintaining a buy recommendation.
Last month alone, Alignment Healthcare Inc. (NASDAQ:ALHC) has seen its stock price decline by 32 percent to $15.32 from $22.54 previously. Year-to-date, the company was down by 32.6 percent.
In other news, the company is set to participate in the Goldman Sachs 47th Annual Global Healthcare Conference in Miami, Florida, next Tuesday, June 9.
Investors are expected to watch for updates about its business, as well as cues on its outlook.
2. Rocket Lab Corp. (NASDAQ:RKLB)
Rocket Lab fell by 14.70 percent on Monday to finish at $122.39 apiece, a third consecutive day, mirroring the drop in the broader space sector following news of a rocket explosion over the weekend.
The company declined alongside its counterparts, namely Planet Labs and Intuitive Machines, among others, as investors turned cautious for the overall sector following the explosion of Blue Origin’s New Glenn rocket while undergoing a hot-fire engine test at its launch pad in Florida on Friday.
The explosion sent shockwaves to neighborhoods in Florida, equivalent to a 2.5 magnitude earthquake.
The drop followed last week’s flurry of positive developments across the space industry after the National Aeronautics and Space Administration announced the awarding of contracts to a number of space players for its ambitious lunar exploration program.
In other news, Rocket Lab Corp. (NASDAQ:RKLB) late last month announced the successful acquisition of Motiv Space Systems (“Motiv”), a California-based company specializing in space robotics, motion control systems, and precision mechanisms for spacecraft.
Motiv—now rebranded as Rocket Lab Robotics—is set to bring mission-tested Mars heritage and is renowned for its advanced multi-degree-of-freedom robotic arms, actuators, and drive electronics that have enabled some of the most ambitious planetary exploration missions in history, including NASA’s Mars Perseverance rover, the CADRE lunar rovers, and precision mechanisms supporting critical scientific instruments and spacecraft subsystems.
Rocket Lab Corp. (NASDAQ:RKLB) said that its acquisition is expected to establish it as one of the few companies in the world capable of delivering end-to-end Mars mission solutions, including launch, spacecraft, software, and Mars-proven robotics for surface and on-orbit operations.
1. Redwire Corp. (NYSE:RDW)
Redwire dropped for a second day on Monday, losing 15.83 percent to finish at $20.68 apiece, as investors took path from an investment firm’s price target downgrade for its stock amid valuation concerns.
In a market note, Jefferies lowered its rating for Redwire Corp. (NYSE:RDW) to hold from buy, despite raising its price target to $24 from $13 previously.
The new figure marked a 51.6 percent upside potential from its latest closing price.
According to Jefferies, the rating downgrade was due to the company’s threefold and twofold surge on both a year-to-date and a month-on-month basis, which it said was driven mainly by valuation expansion rather than changes in its financial outlook.
It said that the rally appears to have already priced in the company’s growth prospects, leaving limited near-term upside.
Jefferies also noted that Redwire Corp. (NYSE:RDW) still needs to prove its capability of converting its growing order backlog into actual revenues and profits, being unprofitable at present.
In other news, Redwire Corp. (NYSE:RDW) recently secured new orders from the US Army Aviation Center of Excellence (AVCOE) and an unnamed member country of the North Atlantic Treaty Organization (NATO) for its Stalker and Penguin UAS to support their aerial defense capabilities.
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