5 Stocks That Are Getting Battered and Bruised Today

DryShips Shares Sink on Registered Direct Offering

DryShips Inc. (NASDAQ:DRYS)‘s stock has sank by another 6% after the company announced that it has entered into a securities purchase agreement with an institutional investor. 5,000 Series C convertible preferred shares, warrants to purchase another 5,000 Series C convertible preferred shares, and 148,998 common shares will be issued for net proceeds after fees of around $5 million. If all the warrants are exercised, DryShips could receive total proceeds of $10 million. DryShips Inc. (NASDAQ:DRYS) shares are down by 70% year-to-date. Four funds that we follow owned 2.9% of the company’s float on March 31.

Analyst Downgrades Sunoco

Sunoco LP (NYSE:SUN) is 7% lower today after Jefferies analyst Christopher Sighinolfi wrote that the company might need to cut its dividend by the end of the year to remain in compliance with various credit covenants and to preserve its financial well-being. Mr. Sighinolfi cites various factors that, when stripped out, would have shown first quarter normalized distributable cash flow of 0.7-times the interest payments, rather than the 1.18-times reported. The analyst estimates Sunoco’s leverage might quickly near the credit covenant limit of 6.25-times, which is a problem given that the debt/EBITDA covenant tightens to 5.5-times in 2017. Mr. Sighinolfi now has a target price of $23 per share on the stock, down from the previous $35 target. 11 funds in our system held shares of Sunoco LP (NYSE:SUN) as of the latest 13F reporting period.

Fibrocell Science’s Lead Product Fails Study

Fibrocell Science Inc (NASDAQ:FCSC) is 36% in the red after a Phase 2 clinical trial showed that the company’s lead product candidate, azficel-T, failed to beat the results of a placebo, thus the primary endpoints of the study were not met. Azficel-T had been a candidate for the treatment of vocal cord scarring resulting in chronic or severe dysphonia. Fibrocell now intends to dedicate its efforts to FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa and its earlier-stage programs. Five funds tracked by Insider Monkey were long Fibrocell Science Inc (NASDAQ:FCSC) at the end of March, owning 9.1% of its shares.

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