Five Stocks That Are Deep in the Red After Poor Earnings Reports, Downgrades

Northstar Realty Finance Corp (NYSE:NRF) was also downgraded today, sending the shares down by over 15% during the first hours of trading. Analysts at Keefe, Bruyette & Woods downgraded the stock to ‘Market Perform’ from the previous rating of ‘Outperform’, but did not change their price target on it from $23 per share. The stock has been in a severe downtrend since February 2015 and has dropped by 39% this year alone.

Hedge fund support for Northstar Realty Finance Corp (NYSE:NRF) weakened over the third quarter, with the number of funds holding a stake in the REIT dropping to 59 by the end of September, from 64 a quarter earlier. Robert Pitts is still bullish on this stock, having increased his investment by 12% over the quarter. His fund, Steadfast Capital Management, reported ownership of 19.1 million shares in its latest 13F filing.

The biggest loser of this bunch is RetailMeNot Inc (NASDAQ:SALE), currently down by roughly 17%, after issuing a disappointing outlook for the current year. The operator of a digital coupon marketplace also reported fourth quarter results today, which beat analysts’ estimates. RetailMeNot posted revenue of $83.1 million, down by 5% year-over-year, but above the consensus of $75.4 million. The company registered a profit of $9 million or $0.36 per share when adjusted for one-time costs, also beating analysts’ projections of $0.27 per share. RetailMeNot issued a soft outlook for the current year however, saying that it expects full-year revenue to range between $225 million and $240 million, below analysts’ forecast of $247 million. The company registered a 19% increase in revenue from mobile transactions and has decided to increase investment in its mobile platform to make its service more personalized for its users.

Although only 15 funds reported ownership of RetailMeNot Inc (NASDAQ:SALE) shares as of the end of September, together they hold a notable 18% of the company’s common stock. Scopia Capital, run by Matt Sirovich and Jeremy Mindich, holds the largest stake in the company among the funds we follow, having reported ownership of 6.92 million shares in its latest quarterly filing.

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