5 Stocks Losing Value Following Analyst Ratings Downgrades

4. Floor & Decor Holdings, Inc. (NYSE:FND)

Number of Hedge Fund Holders: 30

Shares of Floor & Decor Holdings, Inc. (NYSE:FND) turned red on Monday, June 27, 2022, after receiving a downgrade from Goldman Sachs. The research firm lowered its ratings for the hard surface flooring retailer from “Buy” to “Neutral.”

Goldman Sachs analyst Kate McShane thinks that rising interest rates would impact the demand for the company’s products. McShane also referred to the macro challenges Floor & Decor Holdings, Inc. (NYSE:FND) is facing. She trimmed her price target for Floor & Décor stock from $109 per share to $64 per share.

Separately, investment management firm Argosy Investors also talked about Floor & Decor Holdings, Inc. (NYSE:FND) in its first-quarter 2022 investor letter published last month. Here’s what the firm said:

“Floor & Decor Holdings, Inc. (NYSE:FND), was “cyclical” risk sales in the sense that the stock has benefitted from some pandemic-related boosts in sales and/or they are more exposed to economic downturns. Floor & Décor is a terrific business that we would love to own more of at a better price. Given the significant amount of home renovations that have occurred during the pandemic, we thought better of our continued ownership in this stock until we were at a more favorable point in the economic cycle.”