HCA, Imprivata, Garmin: What Is Going On With These Falling Stocks?

Shares of Imprivata Inc (NYSE:IMPR), which provides access management and authentication technology solutions for the healthcare industry, are down by 34% in afternoon trading after the company warned that its third quarter revenue would be $28.9 million-to-$29.2 million versus the expectation of $31.4 million, while its earnings per share would be between a loss of $0.22 abnd a loss of $0.23 versus the estimate of a loss of $0.20. Revenue is expected to miss expectations because several large customers delayed their orders in the last days of the third quarter, and Imprivata’s non-healthcare division’s sales have not been as strong as expected. The earnings miss is certainly concerning, and hopefully the company can get those delayed large orders in the fourth quarter. 

Hedge funds we track are bullish on Imprivata Inc (NYSE:IMPR). 15 funds reported stakes in the company worth $63.87 million as of the end of the second quarter, representing 16.20% of its common shares, up from 11 funds and $37.81 million as of the end of the first quarter. James Flynn’s Deerfield Management owns 1.81 million shares.

Garmin Ltd. (NASDAQ:GRMN) is down by more than 12% after the company warned that its revenue and earnings would be lower than expected. The strong U.S dollar, weak global economic conditions, and competition weighed on results. For the full year, Garmin expects EPS of $2.25 on revenue of $2.8 billion, down from previous guidance of $2.65 in EPS on revenue of $2.9 billion. We would wait on the sidelines until there are more green shoots around the world before considering an entry into this stock.

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