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Analysts are Downgrading These 10 Stocks

In this article, we will take a look at the 10 stocks receiving downgrades from analysts. If you want to check out some more stocks whose ratings were recently cut by analysts, go directly to Analysts are Downgrading These 5 Stocks.

Stocks tied to the S&P 500 and Nasdaq Composite fell this morning, a day after the Federal Reserve hinted that it would keep increasing the rates until inflation comes down. As of 12:09 PM ET, the S&P 500 was negative 0.22 percent, while tech-heavy Nasdaq Composite was down 0.38 percent. In comparison, Dow Jones Industrial Average was up 0.11 percent around the same time.

Meanwhile, Global Payments Inc. (NYSE:GPN), Tyson Foods, Inc. (NYSE:TSN) and Teva Pharmaceutical Industries Limited (NYSE:TEVA) were among the notable stocks that were recently downgraded by analysts.

Baird downgraded Global Payments Inc. (NYSE:GPN) primarily over the absence of positive near-term catalysts, while BofA cut its ratings for Tyson Foods, Inc. (NYSE:TSN), citing deteriorating macro factors. On the other hand, JPMorgan turned bearish on Teva Pharmaceutical Industries Limited (NYSE:TEVA), referring to persistent growth hurdles.

In addition, analysts also lowered their ratings for mobile technology firm AppLovin Corporation (NASDAQ:APP) and healthcare service provider Cano Health, Inc. (NYSE:CANO). Check out the remaining article to find the details of these downgrades.

10. Sprouts Farmers Market, Inc. (NASDAQ:SFM)

Number of Hedge Fund Holders: 24

MKM Partners lowered its ratings for Sprouts Farmers Market, Inc. (NASDAQ:SFM) from “Buy” to “Neutral” on Friday, November 11. Analyst Bill Kirk pointed towards intensifying competition in the industry. Kirk also thinks the company’s profitability tailwind will fade with a drop in inflation.

The downgrade came a couple of days after Sprouts Farmers Market, Inc. (NASDAQ:SFM) released its financial results for the third quarter. The Arizona-based supermarket chain reported earnings of 61 cents per share, beating the consensus of 50 cents. The quarterly sales of $1.59 billion also exceeded the expectations of $1.58 billion.

In addition, Sprouts Farmers Market, Inc. (NASDAQ:SFM) issued an upbeat financial outlook for the current quarter. It projected adjusted earnings in the range of 35 – 39 cents per share, better than analysts’ average estimate of 33 cents per share.

9. Gray Television, Inc. (NYSE:GTN)

Number of Hedge Fund Holders: 25

Wells Fargo analyst Steven Cahall turned bearish on Gray Television, Inc. (NYSE:GTN) on Wednesday, November 9. The analyst was primarily moved by its station acquisitions last year.

He believes Gray Television, Inc. (NYSE:GTN) has to carry more leverage due to those acquisitions as industry trends have deteriorated. Cahall also cut his price target for the stock from $25 per share to $7 per share.

Earlier this month, Gray Television, Inc. (NYSE:GTN) posted lower-than-expected financial results for the third quarter. The television broadcasting company earned $1.03 per share on revenue of $909 million. The results were below the consensus of $1.41 per share for earnings and $950.2 million for revenue.

8. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 26

BofA lowered its ratings for AppLovin Corporation (NASDAQ:APP) from “Buy” to “Neutral” and cut its price target for the mobile tech company from $35 per share to $17 per share on Friday, November 11. The research firm referred to the company’s Q3 earnings miss and a weak outlook for the current quarter.

AppLovin Corporation (NASDAQ:APP) recently reported earnings of 6 cents per share for the third quarter, marginally below the consensus of 7 cents. Revenue for the quarter also slipped 2 percent versus last year to $713.1 million, while analysts were looking for $728.2 million.

For the fourth quarter, AppLovin Corporation (NASDAQ:APP) guided for revenue in the range of $685 – $700 million. The outlook is significantly lower than analysts’ average estimate of $794.2 million.

7. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 30

Lumentum Holdings Inc. (NASDAQ:LITE) received a downgrade from BofA analyst Vivek Arya on Friday, November 11. Arya slashed his ratings for the tech company from “Buy” to “Neutral,” citing competitive and macro challenges.

The analyst believes these factors will restrict the upside in the coming quarters. Arya also trimmed his price target for Lumentum Holdings Inc. (NASDAQ:LITE) from $84 per share to $62 per share.

The downgrade followed the company’s weak financial outlook for its fiscal second quarter. Lumentum Holdings Inc. (NASDAQ:LITE) recently projected adjusted earnings of $1.20 – $1.45 per share and revenue between $490 – $520 million for its fiscal Q2. The guidance fell short of the consensus calling for earnings of $1.60 per share on revenue of $540.3 million.

Like Lumentum Holdings Inc. (NASDAQ:LITE), analysts also lowered their ratings for Global Payments Inc. (NYSE:GPN), Tyson Foods, Inc. (NYSE:TSN) and Teva Pharmaceutical Industries Limited (NYSE:TEVA).

6. Cano Health, Inc. (NYSE:CANO)

Number of Hedge Fund Holders: 31

Raymond James downgraded Cano Health, Inc. (NYSE:CANO) from “Outperform” to “Market Perform” on Thursday, November 10. The research firm was primarily moved by Cano’s lower-than-expected Q3 results.

Cano Health, Inc. (NYSE:CANO) recently reported a loss of 23 cents per share for Q3, wider than analysts’ average estimate for a loss of 5 cents per share. Revenue for the quarter came in at $665 million, missing the consensus of $717.93 million with a big margin.

In addition, Cano Health, Inc. (NYSE:CANO) also cut its full-year sales outlook to a range of $2.7 – $2.75 billion, from its previous guidance between $2.85 – $2.9 billion.

Speaking on the results, CEO of Cano Health, Inc. (NYSE:CANO),  Dr Marlow Hernandez, said in a statement:

“While financial results were below our expectations due to lower revenue from new membership growth, existing membership performed in line with expectations.  As these new members integrate into our care platform, we expect they will perform similarly to existing members in future periods.  In response to our rapid growth and the higher cost of capital in the current economic environment, we are optimizing key areas of the business to leverage existing assets and prioritize cash flow.”

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Disclosure: None. Analysts are Downgrading These 10 Stocks is originally published on Insider Monkey.

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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