Analysts Are Downgrading These 5 Stocks After Weak Earnings Reports

In this article, we will discuss 5 stocks analysts are downgrading after weak earnings reports. To take a look at some more stocks that have been downgraded, go to Analysts Are Downgrading These 10 Stocks After Weak Earnings Reports.

5. SVB Financial Group (NASDAQ:SIVB)

Number of Hedge Fund Holders: 34

SVB Financial Group (NASDAQ:SIVB) is a Santa Clara, California-based high-tech commercial bank.

The bank was forced to slash down its deposit, net interest income, and loan growth guidance for 2022 following the weak Q2 2022 results on July 19. The regional bank is forecasting average loan balances to grow in the high-twenties as compared to prior guidance of mid-thirties. Meanwhile, SVB Financial Group (NASDAQ:SIVB) also slashed its deposit growth guidance. The net interest income growth forecast was lowered from the low fifties to the mid-forties figure.

Following these negative developments, Christopher McGratty at Keefe Bruyette downgraded SVB Financial Group (NASDAQ:SIVB) stock from an Outperform to a Market Perform rating on July 22. The analyst also lowered the target price by 25% to $450. The analyst sees limited earnings visibility, which makes it challenging to come up with a constructive call on SVB Financial Group (NASDAQ:SIVB) stock.

SVB Financial Group (NASDAQ:SIVB) was discussed in the Q1 2022 investor letter of Diamond Hill Capital. Here’s what the firm said:

“Other bottom contributors included SVB Financial Group (NASDAQ:SIVB). Innovation-economy focused bank SVB Financial Group was doubly punished as financials traded down and the sell-off in technology raised concerns about slower growth for this niche bank in the near term.”

As per Insider Monkey’s database, 34 funds held a stake in SVB Financial Group (NASDAQ:SIVB) at the end of Q1 2022, down from 47 in the preceding quarter.