In this article, we will take a look at the 10 stocks losing ground on Monday.
Notable S&P 500 stocks, including Netflix, Inc. (NASDAQ:NFLX), Ford Motor Company (NYSE:F) and Applied Materials, Inc. (NASDAQ:AMAT), were spotted losing value this morning.
Shares of Netflix, Inc. (NASDAQ:NFLX) and Applied Materials, Inc. (NASDAQ:AMAT), fell after receiving price-target cuts from analysts. On the other hand, shares of Ford Motor Company (NYSE:F) dropped after a jury imposed a penalty of $1.7 billion on the automaker over an accident involving its F-250 truck.
In addition, entertainment stocks, including AMC Entertainment Holdings, Inc. (NYSE:AMC) and Warner Bros. Discovery, Inc. (NASDAQ:WBD), also lost ground this morning. Check out the complete article below to see the reasons behind the downward movement of these stocks.
10. iMedia Brands, Inc. (NASDAQ:IMBI)
Number of Hedge Fund Holders: 6
Shares of iMedia Brands, Inc. (NASDAQ:IMBI) lost nearly 30 percent of their value this morning after announcing weak preliminary financial results for its fiscal second quarter and slashing its sales outlook for the full year.
iMedia Brands, Inc. (NASDAQ:IMBI) said that it will post Q2 revenue of about $133 million, below the consensus of $154.45 million. Moreover, it estimated Q2 net loss of approx. $14.3 million, nearly $10 million wider than the year-ago period.
Looking forward, iMedia Brands, Inc. (NASDAQ:IMBI) now expects to generate revenue of about $615 for its fiscal 2022, behind analysts’ average estimate of $658.11 million.
9. Advanced Emissions Solutions, Inc. (NASDAQ:ADES)
Number of Hedge Fund Holders: 11
Shares of Advanced Emissions Solutions, Inc. (NASDAQ:ADES) hit a new 52-week low of $4.11 this morning after the company announced that it has inked an agreement to merge with Arq Limited.
Advanced Emissions Solutions, Inc. (NASDAQ:ADES) said that its shareholders would receive a one-time cash payment of $0.52 per share and 1.11 shares of the joint entity as a part of the deal. Moreover, Advanced Emissions would keep operating as a public entity following the completion of the merger.
The deal, subject to shareholders’ consent, is expected to close by the end of this year or early 2023. Advanced Emissions Solutions, Inc. (NASDAQ:ADES) said the combined company is expected to produce annual sales of $196 million by 2026.
8. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 14
Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) plummeted over 12 percent in the pre-market trading session today following reports that certain suppliers have stopped shipments to the New Jersey-based company because it failed to pay them on time.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) gained value for nearly two consecutive weeks. However, the rally finally came to an end on Thursday, August 18, 2022, after investor Ryan Cohen got rid of his entire holdings in the company. According to securities filings, Cohen sold nearly 9.5 million shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) last week.
Meanwhile, several analysts recently downgraded the struggling retailer. On Thursday, August 18, Wedbush analyst Seth Basham lowered his ratings for Bed Bath & Beyond Inc. (NASDAQ:BBBY) from “Neutral” to “Underperform,” saying the company needs more capital to regain supplier confidence.
7. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 18
Shares of AMC Entertainment Holdings, Inc. (NYSE:AMC) lost nearly 30 percent of their value in pre-market trading Monday. The drop apparently came after the Kansas-based movie theater chain’s rival Cineworld said that it might file for bankruptcy in the U.S.
Cineworld is trying to reduce debts, and Chapter 11 filing is one of the key options the British entertainment conglomerate could execute to revive its business. The news also dragged down the shares of AMC Entertainment Holdings, Inc. (NYSE:AMC), the biggest rival of Cineworld in the U.S.
While AMC Entertainment Holdings, Inc. (NYSE:AMC) recently posted a wider-than-expected Q2 loss, the company’s senior management is confident that its operating performance will significantly improve in the coming quarters.
Like AMC Entertainment Holdings, Inc. (NYSE:AMC), shares of Netflix, Inc. (NASDAQ:NFLX), Ford Motor Company (NYSE:F), Applied Materials, Inc. (NASDAQ:AMAT) were also losing ground on Monday.
6. Coupa Software Incorporated (NASDAQ:COUP)
Number of Hedge Fund Holders: 40
Shares of Coupa Software Incorporated (NASDAQ:COUP) slid over five percent in the pre-market trading session on Monday after RBC Capital analyst Rishi Jaluria downgraded the tech firm from “Sector Perform” to “Underperform.”
Jaluria was moved by the ongoing economic uncertainty. He thinks Coupa Software Incorporated (NASDAQ:COUP) is more prone to a recession than its competitors. He slashed his price target for Coupa stock from $65 per share to $55 per share, citing multiple downside risks in the near term.
Separately, Coupa Software Incorporated (NASDAQ:COUP) also appeared in the first-quarter 2022 investor letter of investment management firm Aristotle Capital Management. Here’s what the firm said:
“We sold our position in Coupa Software following the company’s fourth quarter 2021 earnings results. The company reported earnings that were disappointing relative to the growth trajectory of both pre-COVID and prior quarters over the past fiscal year. We are concerned that the company is seeing slowing traction in the enterprise sector and felt that the weak topline and billings guidance along with margin compression from increased sales and marketing costs creates too many headwinds for us to be comfortable with. The weak fiscal year 2023 billings guidance when combined with management’s qualitative comments about a strong pipeline is concerning to us, and we believe management has done a disappointing job in providing more transparency around the growth drivers for the business.”
5. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 41
Shares of Canadian National Railway Company (NYSE:CNI) slipped over two percent this morning after receiving a downgrade from Evercore ISI. The research firm lowered its ratings for the freight transportation services provider from “Outperform” to “In Line.”
Evercore ISI analyst Jonathan Chappell said the recent volume growth trends of Canadian National Railway Company (NYSE:CNI) have moved down. Chappell also thinks that the company’s full-year outlook range is slightly at risk. He has set a price target of $129 per share for Canadian National Railway Company (NYSE:CNI).
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Shares of Ford Motor Company (NYSE:F) declined over five percent after the opening bell on Monday after a jury imposed a penalty of $1.7 billion on the Michigan-based automaker over an accident involving its heavy-duty truck.
The plaintiffs filed a court case against Ford Motor Company (NYSE:F), saying the weak roof quality of the 2002 Ford F-250 resulted in the death of their parents. Following the verdict, Ford plans to file an appeal, seeking to limit the fine amount.
Meanwhile, Ford Motor Company (NYSE:F) just confirmed that it is trimming nearly 3,000 jobs, primarily in the U.S. and Canada. The latest cuts are a part of its EV restructuring plan announced earlier this year.
3. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 67
Shares of Applied Materials, Inc. (NASDAQ:AMAT) slipped over three percent in mid-day trading Monday after Citi lowered its price target for the materials engineering solutions provider from $160 per share to $150 per share.
The price-target cut came just a few days after Applied Materials, Inc. (NASDAQ:AMAT) announced its fiscal fourth quarter results. While the company surpassed financial expectations for the quarter, senior management cautioned that it would continue to face supply chain disruptions related to certain components.
CEO of Applied Materials, Inc. (NASDAQ:AMAT), Gary Dickerson, stated during the earnings call last week:
“We expect supply shortages of certain silicon components to persist in the near-term, and managing these constraints in partnership with our suppliers and chipmakers is our top priority.”
2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 68
Shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD) dropped about five percent this morning. The decline apparently came after the company postponed the roll out of HBO Max in India.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) reportedly delayed the launch as a part of its broader strategy to save costs. Moreover, few news agencies reported that the company is planning to merge HBO Max and Discovery+ and introduce the combined streaming service in existing and new markets.
Meanwhile, Warner Bros. Discovery, Inc. (NASDAQ:WBD) premiered much-awaited “House of the Dragon” on HBO Max yesterday. However, many users experienced outages while trying to watch the prequel to the blockbuster show Game of Thrones.
1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 95
Shares of Netflix, Inc. (NASDAQ:NFLX) fell nearly six percent this morning after receiving a downgrade from CFRA. The research firm cut its ratings for the video streaming giant from “Hold” to “Sell.”
CFRA analyst Kenneth Leon believes Netflix, Inc. (NASDAQ:NFLX) would likely underperform the S&P 500 Index in the second half of the year. Leon also cut his price target for the stock from $245 per share to $238 per share.
Separately, investment management firm Oakmark Funds also talked about Netflix, Inc. (NASDAQ:NFLX) in its second-quarter 2022 investor letter, stating:
“Netflix‘s stock price was down considerably after providing a weaker than expected outlook for both subscriber growth and profit margins. After meeting with management and scrutinizing our investment thesis, we lowered our estimate of business value to account for the company’s softer near-term guidance. However, we believe the decline in the company’s share price more than adjusts for this. Indeed, Netflix now trades for a discount to the S&P 500 Index on next year’s GAAP earnings despite our view that the company remains a much better than average business run by a highly accomplished management team. We believe the company’s lead in streaming remains intact and we expect terminal operating margins to be substantially higher than they are today. Furthermore, we are encouraged by Netflix’s potential to enhance revenue growth through advertising, the monetization of password sharing and further penetrating international markets.”
You can also take a peek at Top Ten Semiconductor ETFs to Buy in 2022 and 10 Best Cyclical Stocks for Inflation.
Follow Insider Monkey on Twitter
Suggested articles:
- Jim Cramer Recommends These 10 Stocks For Recession
- 12 Best FMCG Stocks to Buy Now
- Top Ten Semiconductor ETFs to Buy in 2022
Disclosure: None. 10 Stocks Losing Ground on Monday is originally published on Insider Monkey.
