Here’s Why These Five Stocks Are in the Red Today: Clovis Oncology, Tyson Foods, Lloyds Banking Group, and More

Although the broader markets are only down moderately after today’s rather disappointing jobs report, shares of five companies Clovis Oncology Inc (NASDAQ:CLVS), eBay Inc (NASDAQ:EBAY), Tyson Foods, Inc. (NYSE:TSN), Acacia Communications, Inc. (NASDAQ:ACIA), and Lloyds Banking Group PLC (ADR) (NYSE:LYG), are rather deep in the red.

In this article, we will find out why traders have sent each stock lower today. In addition, we are going to take a look what the investors from our database think about the companies in question.

Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).

Clovis Oncology Inc (NASDAQ:CLVS) shares are off by 15% after the company announced efficacy and safety data from NDA population for Rucaparib at an oral presentation at the 2016 ESMO Congress in Denmark. Rucaparib is currently under review by the FDA for treatment of certain types of ovarian cancer. Shares are down because Rucaparib response rates in platinum refractory and platinum resistant and patients of 0% and 25% (according to the oral presentation ) are lower than some trader’s estimates. Shares have rebounded somewhat from their session lows due to various analysts on the Street defending the stock, with some saying that the odds of FDA approval are relatively unchanged in their opinion. Mitchell Blutt‘s Consonance Capital Management established a new stake of over 2.93 million shares in Clovis Oncology Inc (NASDAQ:CLVS) during the second quarter.

eBay Inc (NASDAQ:EBAY) shares are down by 1.6% after Channeladvisor posted new data that showed the e-commerce company’s same-store sales growth slowing sequentially. For the month of September, ChannelAdvisor estimates that eBay’s same store sales clocked in at 4%, a slowdown from August’s 5.9%, and well below the broader e-commerce growth rate of around 15%. The number of funds from our database with holdings in eBay Inc (NASDAQ:EBAY) inched up by one quarter-over-quarter to 58 at the end of June.

On the next page, we find out why Tyson Foods, Acacia Communications, and Lloyds Banking Group PLC are in the red.
Tyson Foods, Inc. (NYSE:TSN) is 10% in the red on the back of Pivotal Research cutting its price target on the stock to $40 from $100 and downgrading Tyson to ‘Sell’ from ‘Buy’. The research firm cut its rating because it feels a relatively new class action lawsuit alleging systematic collusion could lead to more investor scrutiny over the sustainability of chicken producer’s margins. The additional scrutiny could cause Tyson’s valuation multiple to shrink. Of the around 749 top funds that we track, 40 owned $1.77 billion worth of Tyson Foods, Inc. (NYSE:TSN)’s stock, which accounted for 7.10% of the float on June 30, versus 40 funds and $2 billion, respectively, on March 31.

Acacia Communications, Inc. (NASDAQ:ACIA) has retreated by 6% after the company announced the pricing of a follow-on public offering. According to Acacia, the pricing of the public offering of 4.5 million shares of common stock will be set at $100 per share. Acacia is selling 1.21 million shares while Acacia’s certain existing stockholders are selling 3.289 million shares. As is tradition, underwriters have been given a 30-day option to purchase 15% more of the offering. 6 elite funds owned shares of Acacia Communications, Inc. (NASDAQ:ACIA) at the end of June.

Lloyds Banking Group PLC (ADR) (NYSE:LYG) shares are off by 5% today on the news that the sale of the British public’s stake in Lloyds will re-commence in the coming days. Here’s the relevant excerpt from the British government’s site:

“Speaking in Washington, the Chancellor, Philip Hammond announced that the government will begin to sell its 9.1% stake in Lloyds via a trading plan, withdrawing the planned retail sale… A trading plan involves gradually selling shares in the market over time, in an orderly and measured way. The trading plan has been initiated today and sales may commence in the coming days. The plan will be in place for approximately 12 months.”

The number of funds from our database with holdings in Lloyds Banking Group PLC (ADR) (NYSE:LYG) rose by three quarter-over-quarter to 10 at the end of June.

Disclosure: none