In this article, we discuss the 10 stocks that jumped after Jim Cramer’s negative call.
Jim Cramer, the host of Mad Money on CNBC, has had an extraordinary career in the finance world over the past three decades. After graduating from Harvard with a law degree in the mid-80s, Cramer somehow landed at investment bank Goldman Sachs. After a three-year stint at the firm, he left to start his own hedge fund named Cramer Levy Partners. His stock picks as a hedge fund chief beat the S&P 500 for seven consecutive years. However, the dot-com crash of the late 1990s forced him to leave his position at the fund as it lost money.
Since then, Cramer has excelled as a journalist investor, building an ardent fan following despite the fact that his stock picks on television have not outperformed the benchmark indexes by a margin worthy enough for them to attract serious attention. Cramer embodies the decades-old conflict within the American finance world, the one between the panache of investment media versus the patience of intelligent investing. Cramer is notorious for high energy bullish and bearish calls on his show that do not always pan out.
One of the most famous calls that Cramer made was in March 2008, when he said that Bear Stearns was fine. In mid-March, the firm was saved from a total collapse when it was bought by peer JPMorgan at a valuation of just $2 per share. In September 2021, Cramer put out a bullish call on entertainment firm AMC. The stock has plunged 71% since then. Similarly, his bull calls on other growth stocks like Coinbase and Netflix have also invited ridicule in the present market environment where investors are seeking safe haven from risky bets.
Cramer has also urged his viewers to prepare for a market rally, one that would see the shares of prominent tech firms like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG) rise despite an overall market slowdown. The journalist investor has been increasingly in the spotlight over the past few months as retail traders are tracking his bull and bear calls through the InverseCramer ETF. This ETF has returned over 2.3% to investors in the past four weeks.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. The firms that Jim Cramer is bearish on but have registered an increase in their share price over the past month were selected for the list. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Stocks That Jumped After Jim Cramer’s Negative Call
10. Getty Images Holdings, Inc. (NYSE:GETY)
Number of Hedge Fund Holders: N/A
Percentage Increase in Share Price Over Past Month as of August 25: 217%
Getty Images Holdings, Inc. (NYSE:GETY) operates as a visual content creator. On August 15, Jim Cramer told his viewers to “refrain” from buying the shares of the company until the share price declines. Cramer claimed that the rise in the share price of the firm was largely down to people seeing the shares as “an attractive opportunity to engineer a short squeeze”. Cramer predicted the stock will come down as more investors sold their shares and told viewers to “stay away until it cools off”.
On August 11, Benchmark analyst Mark Zgutowicz downgraded Getty Images Holdings, Inc. (NYSE:GETY) stock to Hold from Buy without a price target, noting that the firm delivered solid second quarter results despite a macro backdrop and significant currency headwinds.
Getty Images Holdings, Inc. (NYSE:GETY) posted earnings for the second quarter of 2022 on August 10, reporting a revenue of more than $233 million, missing analyst expectations by close to $10 million. The firm said it expected year-on-year growth in revenue of up to 6.7% in 2022.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG), Getty Images Holdings, Inc. (NYSE:GETY) is one of the stocks that will likely benefit from a year-end market rally.
9. Companhia Siderúrgica Nacional (NYSE:SID)
Number of Hedge Fund Holders: 7
Percentage Increase in Share Price Over Past Month as of August 25: 17%
Companhia Siderúrgica Nacional (NYSE:SID) is an integrated steel producer. On August 9, Cramer outlined his bearish view on the firm during the Lightning Round of his show. The journalist investor, while answering a viewer question, claimed that people did not want to own steel companies “at this point in the cycle”. He also added that if people did buy steel stocks, it would rather be established names like Nucor Corp.
Some of the industries that make use of products sold by Companhia Siderúrgica Nacional (NYSE:SID) include construction material stores, home centers, concrete producers, construction companies, mortar industries, cement artifact producers, as well as thermoelectric co-generation and hydroelectric power plants.
At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $8 million in Companhia Siderúrgica Nacional (NYSE:SID), compared to 9 in the preceding quarter worth $42 million. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Companhia Siderúrgica Nacional (NYSE:SID), with 1.9 million shares worth more than $5.6 million.
8. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 9
Percentage Increase in Share Price Over Past Month as of August 25: 35%
Lithium Americas Corp. (NYSE:LAC) operates as a resource firm. On August 11, during the Lightning Round of his show, Cramer underlined the bear case for the firm. In response to a viewer question about the company, Cramer identified Lithium Americas as a “perpetual money loser” and said he could not recommend stocks like it. The company recently posted losses per share of $0.12 in earnings for the second quarter of 2022.
On July 22, investment advisory Canaccord maintained a Speculative Buy rating on Lithium Americas Corp. (NYSE:LAC) stock and lowered the price target to C$49 from C$50. Analyst Katie Lachapelle issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Singapore-based investment firm Himension Capital is a leading shareholder in Lithium Americas Corp. (NYSE:LAC), with 3.3 million shares worth more than $66 million. Overall, at the end of the second quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $110 million in Lithium Americas Corp. (NYSE:LAC), compared to 19 in the preceding quarter worth $214 million.
7. MannKind Corporation (NASDAQ:MNKD)
Number of Hedge Fund Holders: 13
Percentage Increase in Share Price Over Past Month as of August 25: 15%
MannKind Corporation (NASDAQ:MNKD) operates as a biopharmaceutical firm. Cramer has been bearish on the stock in the past few weeks. During the Lightning Round of his show on August 3, the former hedge fund manager bemoaned that no one ever liked when he said anything bad about the firm. He also questioned whether the firm was simply “not a good company” and that honest analysis of stocks mattered to him.
MannKind Corporation (NASDAQ:MNKD) posted earnings for the second quarter of 2022 on August 9, reporting losses per share of $0.11, missing market estimates by $0.02. The revenue over the period was $18.8 million, down close to 19% year-on-year.
At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $72 million in MannKind Corporation (NASDAQ:MNKD), compared to 19 in the previous quarter worth $61 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm VenBio Select Advisor is a leading shareholder in MannKind Corporation (NASDAQ:MNKD), with 9.1 million shares worth more than $34 million.
6. 23andMe Holding Co. (NASDAQ:ME)
Number of Hedge Fund Holders: 13
Percentage Increase in Share Price Over Past Month as of August 25: 32%
23andMe Holding Co. (NASDAQ:ME) is a consumer genetics testing company. On August 9, Cramer discussed the stock during the Lightning Round of his show. The former Goldman Sachs employee underlined that the stock had no mojo, noting that it was one of the major reasons why it was going nowhere. He noted that he had said the same thing to the CEO of the firm when he had had him on the show.
In late May, Citi analyst Daniel Grosslight maintained a Neutral rating on 23andMe Holding Co. (NASDAQ:ME) stock and lowered the price target to $3 from $6, noting that the firm had a uniquely valuable asset in the genotypic and phenotypic data space.
At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $41 million in 23andMe Holding Co. (NASDAQ:ME), compared to 19 in the previous quarter worth $71 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Euclidean Capital is a leading shareholder in 23andMe Holding Co. (NASDAQ:ME), with 10.2 million shares worth more than $25 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG), 23andMe Holding Co. (NASDAQ:ME) is one of the stocks that hedge funds are monitoring.
5. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 14
Percentage Increase in Share Price Over Past Month as of August 25: 105%
Bed Bath & Beyond Inc. (NASDAQ:BBBY) owns and runs a chain of retail stores. On August 17, Cramer made a bearish case for the shares of the retail firm in an appearance on CNBC. The former hedge fund manager said that people were in “heavy speculation” mode even as the two-year rates go up and that it was the “wrong time” to be on this bandwagon, pointing out that Bed Bath & Beyond Inc. (NASDAQ:BBBY) was “completely paralyzed” and the firm should be selling stock. He said the rally in the shares was reminiscent of the GameStop saga in 2021.
On August 16, Odeon Capital analyst Alexander Arnold downgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock to Sell from Hold with a price target of $7.50, noting that the shares of the firm were rising due to a meme-driven short squeeze.
At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $23 million in Bed Bath & Beyond Inc. (NASDAQ:BBBY), compared to 15 in the previous quarter worth $69 million.
In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Bed Bath & Beyond Inc. (NASDAQ:BBBY) was one of them. Here is what the fund said:
“Bed Bath & Beyond 5.165% 08/2044 declined 67.4% in the period. Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported 4Q21 sales of $2.05 billion, down 22% Y/Y, missing consensus of $2.08 billion. The company lost $0.92 per share in the quarter, down from 4Q20 adjusted EPS of $0.40, below analyst expectations for EPS of $0.03. Management noted supply chain disruptions and the Omicron variant led to inventory availability challenges, which had an estimated sales impact of $175 million, or 8.5% of 4Q21 net sales, and a 400 basis points (bps) Y/Y contraction in 4Q21 adjusted gross margin to 28.8%, driven by product cost increases and higher than anticipated freight and shipping costs. Additional headwinds in the quarter included general weakness in the retail segment, highlighted by big earnings misses from Walmart and Target, along with Moody’s downgrading Bed Bath’s corporate family rating from B1 to B2. The ratings agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues weighing on the company’s market share and profitability going forward as the main drivers for the downgrade. However, Moody’s maintained a stable outlook for the retailer due to the financial flexibility provided by the company’s liquidity position and low level of funded debt.”
4. Indie Semiconductor, Inc. (NASDAQ:INDI)
Number of Hedge Fund Holders: 15
Percentage Increase in Share Price Over Past Month as of August 25: 16%
Indie Semiconductor, Inc. (NASDAQ:INDI) markets semiconductor products. Cramer has generally been bullish on chip stocks in the past few months but has made a bear case for Indie. In June, the former hedge fund manager took a dig at the firm by saying that he knew about a lot of firms in the chip business that were making a lot of money whose stock was cheap as well. Indie has beaten market estimates on earnings consistently for the last few quarters and expects to cross the profitability barrier in 2023.
On June 15, investment advisory B Riley downgraded Indie Semiconductor, Inc. (NASDAQ:INDI) stock to Neutral from Buy and lowered the price target to $8 from $9. Analyst Craig Ellis issued the ratings update.
At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $65 million in Indie Semiconductor, Inc. (NASDAQ:INDI), compared to 17 the preceding quarter worth $56 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Indie Semiconductor, Inc. (NASDAQ:INDI) was one of them. Here is what the fund said:
“Indie Semiconductor, Inc. (NASDAQ:INDI) is a fabless designer, developer, and marketer of automotive semiconductors for automated driver assistance systems, user experience, and electrification applications. Indie leverages its cross-domain semiconductor expertise in analog, processing and power chips to integrate multiple chips and capabilities into a single package and offer its customers lower cost products in a smaller form-factor. Indie Semiconductor, Inc. (NASDAQ:INDI) has strong market share in applications such as Apple CarPlay and ultrasonic parking assist with multiple contracts ramping in the coming quarters in applications such as advanced lighting controls, telematics, and electrification. The stock rose on increasing investor recognition of the longer-term opportunity for the company, especially in light of the current automotive semiconductor supply shortage. Semiconductor content in cars is expected to grow substantially over the coming decade as automated safety features and electrification penetrate an increasing percentage of vehicles.”
3. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 38
Percentage Increase in Share Price Over Past Month as of August 25: 14%
Trane Technologies plc (NYSE:TT) is a building products firm based in Ireland. Although the company has posted solid earnings for the second quarter of 2022 recently and also raised guidance numbers, Jim Cramer has been bearish on the stock. This is evident from his comments about the firm during the Lightning Round of his show on August 16, during which he advised viewers to invest in peers like Carrier instead of Trane.
On August 4, Wells Fargo analyst Joseph O’Dea maintained an Underweight rating on Trane Technologies plc (NYSE:TT) stock and raised the price target to $133 from $123, noting that the demand commentary was very upbeat for the firm in the second quarter earnings.
At the end of the second quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Trane Technologies plc (NYSE:TT), the same as in the previous quarter worth $1.7 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Trane Technologies plc (NYSE:TT) was one of them. Here is what the fund said:
“Trane Technologies plc (NYSE:TT), another energy efficiency play in the industrials sector that should benefit from trends highlighted in the REPowerEU energy security plan, was a top detractor for the quarter, mainly due to continued supply chain headwinds raising costs. We think there is a strong secular tailwind for the cost and emissions savings Trane provides: the company makes products that help reduce energy consumption and emissions for residential and commercial HVAC and transport refrigeration, the minimization of food waste and other perishable goods and the increased productivity for Trane’s customers. Trane Technologies plc (NYSE:TT) estimates ~15%-25% of all greenhouse gas emissions in the world are emitted through HVAC systems and buildings.”
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 53
Percentage Increase in Share Price Over Past Month as of August 25: 34%
Enphase Energy, Inc. (NASDAQ:ENPH) markets home energy solutions and has operations across the world. Even though Cramer has been exceedingly bullish on oil stocks in light of soaring energy prices over the past few months, he has taken an exception to Enphase Energy. In mid-June, Cramer claimed that the shares were too expensive relative to peers in the sector. He added that there were many better stocks in the industry for investors to choose from.
On August 8, JPMorgan analyst Mark Strouse maintained an Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH) stock and raised the price target to $321 from $261, noting the firm would benefit from the recently passed Inflation Reduction Act.
At the end of the second quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Enphase Energy, Inc. (NASDAQ:ENPH), compared to 57 the preceding quarter worth $749 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Enphase Energy, Inc. (NASDAQ:ENPH) was one of them. Here is what the fund said:
“Enphase Energy, Inc. (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Percentage Increase in Share Price Over Past Month as of August 25: 16%
Occidental Petroleum Corporation (NYSE:OXY) is an integrated oil and gas firm. During the Lightning Round of his show on August 16, Cramer outlined his bearish outlook on Occidental. Responding to a viewer question, Cramer asked why people would invest in Occidental when they had options like Devon to choose from. Occidental shares have shot up by over 194% in the past year. Compared to this, Devon shares are up 150%. Legendary value investor Warren Buffett is one of the biggest bulls of the oil and gas firm.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $79 from $84. Analyst Jeanine Wai issued the ratings update.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $13.7 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 67 the preceding quarter worth $12.6 billion.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum Corporation (NYSE:OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!”
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
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Disclosure. None. 10 Stocks That Jumped After Jim Cramer’s Negative Call is originally published on Insider Monkey.
