Analysts are Cutting Price Targets of These 15 Stocks

Published September 30, 2021 at 12:20 pm EDT Updated September 7, 2026 at 1:00 pm EDT

In this article, we discuss the 15 stocks that analysts are cutting price targets of.

A post-pandemic economic recovery has been slowed by the rapid spread of the Delta variant of the coronavirus across the globe over the past few weeks, affecting consumer spending on restaurants and travel while also delaying the complete reopening of offices and schools. Supply chain constraints and an increase in demand for goods have also led to product shortages, contributing to inflation – the Consumer Price Index (CPI) rose by 5.3% year-over-year in August – and resulting in growth-related downgrades at the stock market.

The Federal Reserve has dismissed these concerns as transitory, affirming that the government plans to scale back economic support measures designed to keep businesses afloat during the pandemic. However, huge backups at US ports and manufacturing problems in other parts of the world indicate that consumers may not see prices lowered until well into 2022. According to Dana Peterson, an economic expert at non-profit The Conference Board, labor costs and rents are also likely to increase, though their intensity of the hike may vary across the coming months.

In this environment, it is prudent for investors to monitor their portfolios for stocks that may weigh them down. Some of the high-profile stocks that had their price lowered by analysts recently include Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and Wells Fargo & Company (NYSE:WFC), among others discussed in detail below. According to IHS Markit, a business information provider, the US GDP is expected to grow at a 3.6% annual rate in the third quarter, down from a previous estimate of 7.8%.

Our Methodology

With this context in mind, here is our list of the 15 stocks that analysts are cutting price targets of. All the firms listed below have had their price targets lowered by an investment advisory this week.

The hedge sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey. The list is ranked according to the number of hedge funds having stakes in each firm.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Analysts are Cutting Price Targets of These Stocks

15. MSC Industrial Direct Co., Inc. (NYSE:MSM)

Number of Hedge Fund Holders: 18

MSC Industrial Direct Co., Inc. (NYSE:MSM) is a New York-based firm that makes and sells metalworking maintenance and repair products. It is placed fifteenth on our list of 15 stocks that analysts are cutting price targets of.

On September 27, investment advisory KeyBanc reiterated an Overweight rating on MSC Industrial Direct Co., Inc. stock but lowered the price target to $91 from $112. Steve Barger, an analyst at the advisory, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, Texas-based investment firm Yacktman Asset Management is a leading shareholder in MSC Industrial Direct Co., Inc. with 1.2 million shares worth more than $112 million.

Just like Amazon.com, Inc., Alibaba Group Holding Limited, and Wells Fargo & Company, MSC Industrial Direct Co., Inc. is one of the stocks feeling the heat of a market slowdown.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and MSC Industrial Direct Co., Inc. (NYSE:MSM) was one of them. Here is what the fund said:

“MSC Industrial Direct was another significant addition during the quarter. Management moves to improve margins and cash flow had the distributor of industrials parts and equipment poised for better performance leading into COVID, but the company was severely impacted by the closing of the economy. In a fragmented market, MSC has the ability to flex its supply chain to win market share as the business cycle picks up.”

14. Visteon Corporation (NASDAQ:VC)

Number of Hedge Fund Holders: 20

Visteon Corporation (NASDAQ:VC) is ranked fourteenth on our list of 15 stocks that analysts are cutting price targets of. The firm markets automotive electronics and connected cars solutions. It is headquartered in Michigan.

On September 27, investment advisory Goldman Sachs kept a Neutral rating on Visteon Corporation stock but lowered the price target to $104 from $120, noting that the target reflected reduced production output for auto firms.

At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $175 million in Visteon Corporation, the same as in the preceding quarter worth $196 million.

13. Logitech International S.A. (NASDAQ:LOGI)

Number of Hedge Fund Holders: 20

Logitech International S.A. (NASDAQ:LOGI) is placed thirteenth on our list of 15 stocks that analysts are cutting price targets of. The firm makes and sells products that help connect people to digital and cloud technologies. It is headquartered in Switzerland.

On September 27, investment advisory Morgan Stanley downgraded Logitech International S.A. stock to Underweight from Equal Weight and lowered the price target to $82 from $119, noting greater probability of negative estimate revisions and multiple compression.

Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Logitech International S.A. with 1.6 million shares worth more than $196 million.

12. Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Number of Hedge Fund Holders: 21

Bed Bath & Beyond Inc. is a New Jersey-based firm that operates a chain of retail stores across North America. It is ranked twelfth on our list of 15 stocks that analysts are cutting price targets of.

On September 27, investment advisory Telsey Advisory Group maintained a Market Perform rating on Bed Bath & Beyond Inc. stock but lowered the price target to $28 from $25. Cristina Fernandez, an analyst at the advisory, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Contrarius Investment Management is a leading shareholder in Bed Bath & Beyond Inc. with 4.3 million shares worth more than $146 million.

In its Q2 2021 investor letter, Heartland Advisors, 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:

“The gyrations of story stocks touted on message boards have resulted in distortions in the market but on rare occasions have also swept up a few compelling opportunities. Bed Bath & Beyond (BBBY), a national retailer of home goods, babywear and health and beauty products, is one example.

Even before Bed Bath & Beyond made headlines earlier this year when day traders drove the price of shares up in an effort to squeeze short sellers, the company had caught our attention for the results its new management team was delivering since taking over in late 2019.

CEO Mark Tritton, who came to BBBY after a successful tenure at Target, quickly got to work installing new corporate leadership, closing underperforming stores, selling non-core businesses to firm up the balance sheet, and implementing retail best practices across the company. He also worked to improve store efficiency and revamped the company’s online presence.

The moves by Tritton made an impact. In its 2020 fiscal year, BBBY closed 144 under-performing stores, grew new digital customers by 95%, reduced debt by $1 billion, and returned $375 million of capital to shareholders. Despite the meaningful improvements, and the strong performance year-to-date, shares of the retailer are trading at just .35X sales and less than 5X estimated 2022 earnings before interest, taxes, depreciation, and amortization—roughly half of the multiple commanded by peer Williams- Sonoma Inc.

At current valuations, we view BBBY as offering attractive upside as recent improvements gain traction. It appears we’re not alone as executives have also been buying shares in recent months.”

11. Allegheny Technologies Incorporated (NYSE:ATI)

Number of Hedge Fund Holders: 28

Allegheny Technologies Incorporated (NYSE:ATI) is a Pennsylvania-based firm that makes and sells specialty materials and components. It is placed eleventh on our list of 15 stocks that analysts are cutting price targets of.

On September 28, investment advisory KeyBanc maintained an Overweight rating on Allegheny Technologies Incorporated stock but lowered the price target to $23 from $27. Philip Gibbs, an analyst at the advisory, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Allegheny Technologies Incorporated with 3.7 million shares worth more than $79 million.

10. Travel + Leisure Co. (NYSE:TNL)

Number of Hedge Fund Holders: 30

Travel + Leisure Co. (NYSE:TNL) is ranked tenth on our list of 15 stocks that analysts are cutting price targets of. The firm markets hospitality services and products. It is headquartered in Florida.

On September 28, investment advisory Jefferies downgraded Travel + Leisure Co. stock to Hold from Buy and reduced the price target to $61 from $74. David Katz, an analyst at the advisory, issued the ratings update.

At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $668 million in Travel + Leisure Co., the same as in the preceding quarter worth $745 million.

9. HP Inc. (NYSE:HPQ)

Number of Hedge Fund Holders: 39

HP Inc. (NYSE:HPQ) is placed ninth on our list of 15 stocks that analysts are cutting price targets of. The company makes and sells personal computing devices and is headquartered in California.

On September 29, investment advisory JPMorgan downgraded HP Inc. stock to Neutral from Overweight and reduced the price target to $30 from $35, noting that the upside for the shares was limited by concerns around the PC cycle.

At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in HP Inc., down from 43 in the preceding quarter worth $1.5 billion.

8. NXP Semiconductors N.V. (NASDAQ:NXPI)

Number of Hedge Fund Holders: 52

NXP Semiconductors N.V. (NASDAQ:NXPI) is a Netherlands-based semiconductor manufacturer. It is ranked eighth on our list of 15 stocks that analysts are cutting price targets of.

On September 28, investment advisory Bernstein downgraded NXP Semiconductors N.V. stock to Market Perform from Outperform and lowered the price target to $230 from $245, noting that the valuation of the firm was becoming “uncomfortable”.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in NXP Semiconductors N.V. with 1 million shares worth more than $212 million.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NXP Semiconductors N.V. (NASDAQ:NXPI) was one of them. Here is what the fund said:

“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. Two recent additions, specialty semiconductor maker (including) NXP Semiconductors, was among the portfolio’s leading contributors in the first quarter. NXP rose as auto production ramped up and electric vehicle sales continued to expand.”

7. XPO Logistics, Inc. (NYSE:XPO)

Number of Hedge Fund Holders: 57

XPO Logistics, Inc. (NYSE:XPO) is a Connecticut-based company that provides supply chain solutions. It is placed seventh on our list of 15 stocks that analysts are cutting price targets of.

On September 29, investment advisory Raymond James kept an Outperform rating on XPO Logistics, Inc. stock but lowered the price target to $100 from $155. Patrick Tyler Brown, an analyst at the advisory, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in XPO Logistics, Inc. with 11 million shares worth more than $1.5 billion.

In its Q4 2020 investor letter, Adestella Investment Management, an asset management firm, highlighted a few stocks and XPO Logistics, Inc. (NYSE:XPO) was one of them. Here is what the fund said:

“XPO Logistics (XPO) – the XPO thesis was very simple, but it proved very successful. As the stock irrationally sold off in the spring and made only a tepid recovery in the following months, we were able to buy into a well-operated business with plenty of growth drivers at a compelling price. Sentiment surrounding the company improved thanks to a strong earnings, the resumption of asset sale plans that had been shelved in the spring, and the announcement of a spinoff to unlock the SOTP value. As the stock approached our estimate of a $115 fair value, we exited with more than a clean double from our cost basis.”

6. Lockheed Martin Corporation (NYSE:LMT)

Number of hedge fund holders: 58

Lockheed Martin Corporation (NYSE:LMT) is ranked sixth on our list of 15 stocks that analysts are cutting price targets of. The firm operates as a security and defense firm and is headquartered in Maryland.

On September 29, investment advisory Cowen downgraded Lockheed Martin Corporation stock to Market Perform from Outperform and lowered the price target to $375 from $400, noting that the relative upside of the firm was capped by overhangs.

Out of the hedge funds being tracked by Insider Monkey, New York-based firm Arrowstreet Capital is a leading shareholder in Lockheed Martin Corporation with 536,001 shares worth more than $202 million.

Just like Amazon.com, Inc., Alibaba Group Holding Limited, and Wells Fargo & Company, Lockheed Martin Corporation is one of the stocks feeling the heat of a market slowdown.

In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Lockheed Martin Corporation (NYSE:LMT) was one of them. Here is what the fund said:

“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”

5. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 67

NIKE, Inc. (NYSE:NKE) is placed fifth on our list of 15 stocks that analysts are cutting price targets of. The company markets athletic footwear, apparel, and equipment. It is headquartered in Oregon.

On September 27, investment advisory Barclays reiterated an Overweight rating on NIKE, Inc. stock but lowered the price target to $185 from $194, noting that the quarterly results of the firm had “disappointed” on the back of inventory shortages.

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in NIKE, Inc. with 8.7 million shares worth more than $1.3 billion.

In its Q4 2020 investor letter, Dynamo Cougar, an asset management firm, highlighted a few stocks and NIKE, Inc. (NYSE:NKE) was one of them. Here is what the fund said:

“Nike used to have a very traditional IT infrastructure, which was the starting point for their transformation. Back in 2013 the company had most of their IT in one data center and two distinct IT and software development teams. The infrastructure was organized in a way that all IT solutions, such as Nike.com and Nike apps, were running on the same servers and databases. The result was that any change had to be approved and then deployed with the next release. It was a very manual process, depended on a number of different vendors, and had to be approved by a waterfall process involving both the software and the IT teams. As of 2018, the company has four AWS regions, 150 software engineers, three development locations, and multiple data center locations. In the process, the company decided that they would not just lift and shift their existing applications from their own servers to the public cloud, but instead decided to rethink every single component of their IT organization. The results show that this transformation worked. The organization went from one software deployment every two months to 2.6 deployments per day. Nike went from 90% manual software testing to 100% automated testing, which freed up a lot of developer time. They managed to reduce the time to make small changes on the website and apps from 3 hours to 5 seconds, which means they could react to sports and similar live events. In the past it took more than six months to add a new experience to their digital services, and today it takes one day. In the past they would have a 3-month lead time for new hardware and today they can scale and deploy without any lead time.5 The IT infrastructure now supports 50+ commerce countries versus 6 in 2012, supports 25 languages versus 7, and enables the e-commerce site to access the inventory of 500+ retail stores.

The early move to the cloud and the willingness to adapt to the new environment also allowed Nike to benefit from some significant learnings. For instance, the company first used the Cassandra database when they moved to the cloud. However, due to many technical limitations, it would not allow them to scale for peak demand. Peak demand was becoming a big problem because the Nike SNKRS App would launch products with very limited availability, which meant that millions of people would access the app at the same time. Nike then decided to move to the AWS DynamoDB database (a platform offering), which allowed them to scale up prior to these launches, and thereby spend 98% less than with Cassandra, while offering the same service. In addition, they managed to monitor the launches in real time, which allowed them to react to problems and error messages within seconds. The vast amount of data that is generated within this very short period is now analyzed with machine learning techniques to improve the stability, reliability, and optimization of future launches. The company is working on a number of other efforts that benefit from the cloud environment, such as the implementation of RFID whose data output is managed through the AWS IoT offering.

The benefits of this transformation to the consumer are clear. Nike can now deal with higher demand, deal with sudden spikes in orders, offer better product recommendations, offer more customization, provide better product fulfillment, and more. In addition, the company benefits from a leaner and more efficient IT organization, better product conversion, more feedback data from customers, social integration into products, and ultimately a more satisfied costumer. We think Nike’s continued investment into their modern IT stack will be a key differentiator for their competitive positioning.”

4. Micron Technology (NASDAQ:MU)

Number of Hedge Fund Holders: 87

Micron Technology (NASDAQ:MU) is an Idaho-based firm that develops and sells memory and storage products. It is ranked fourth on our list of 15 stocks that analysts are cutting price targets of.

On September 29, investment advisory Wedbush maintained a Neutral rating on Micron Technology stock and lowered the price target to $85 from $105, noting that the guidance numbers of the firm for the coming fiscal quarter were below consensus estimates.

At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology, down from 100 in the preceding quarter worth $7.6 billion.

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:

“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.

With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.

As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.

While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.

The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”

3. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 94

Wells Fargo & Company is a California-based financial services company. It is placed third on our list of 15 stocks that analysts are cutting price targets of.

On September 28, investment advisory Morgan Stanley downgraded Wells Fargo & Company stock to Equal Weight from Overweight and reduced the price target to $46 from $49. Betsy Graseck, an analyst at the advisory, issued the ratings update.

At the end of the second quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Wells Fargo & Company, down from 96 in the previous quarter worth $7.4 billion.

In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said:

“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 146

Alibaba Group Holding Limited is ranked second on our list of 15 stocks that analysts are cutting price targets of. The firm operates as a diversified technology firm and is headquartered in China.

On September 29, investment advisory Bank of America reiterated a Buy rating on Alibaba Group Holding Limited stock but lowered the price target to $254 from $285, citing a broader ecommerce slowdown as one of the reasons behind the lower target.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited with 14 million shares worth more than $3.2 billion.

In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 271

Amazon.com, Inc. is placed first on our list of 15 stocks that analysts are cutting price targets of. The company operates as a technology firm and is headquartered in Washington.

On September 27, investment advisory Morgan Stanley maintained an Overweight rating on Amazon.com, Inc. stock but lowered the price target to $4,100 from $4,300, predicting that the logistics workforce and rising wages would put the firm under profit pressure.

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. with 3.8 million shares worth more than $13 billion.

In its Q1 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:

“Amazon (AMZN):We sold our last remaining stake in Amazon this quarter. Amazon was our longest-running investment holding, after having originally purchasing it at the inception of Hayden in 2014, at a price of ~$317.

I gave some details of how Amazon has progressed over these past 6.5 years in last year’s Q2 2020 letter, which partners can find here (LINK). The company has executed amazingly well over this tenure, with revenues up ~3.3x and since our initial purchase, and reported operating income up ~30x over that period.

Generally, I believe there are three reasons to sell an investment:1) we recognize our initial thesis is wrong (sell out as quick as possible), 2) we have a significantly higher returning opportunity to redeploy the capital into (sell-down to fund the new investment), or 3) the company is maturing and hitting the top part of it’s S-curve / business lifecycle, so the business has fewer places to reinvest its capital internally. As such, the future returns will likely be lower than the past. This investment thus becomes a “source of capital” in the future, as we fund earlier-stage investment opportunities.

In the case of Amazon, we decided to sell due to the third scenario. I’m sure Amazon will continue to generate value for shareholders and continue to keep pace with the broader technology sector. However, I’m just not confident it’s as attractive an investment as when we first invested.

With ~51% of US households having an Amazon Prime account (and with very low churn), each of these households continuing to increase their annual spend with Amazon, and few / no real competitors in sight, Amazon is a dominant force that will only continue to accrue value as consumers continue to move from offline to online purchases for their everyday needs. Likewise, the “cash-flow machine” of Amazon Web Services is in a similar position of strength, with AWS now having ~32% market share and continuing to grow at +30% y/y. Because of this, I think Amazon is probably one of the safest investments in the technology sector today.

So why did we decide to sell the investment then? Simply put, Amazon is …”read the entire letter here]

You can also take a peek at 15 Dividend Stocks People Buy for Early Retirement and 10 Best Tech ETFs to Buy According to Reddit.

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