Jim Cramer Recommends Selling These 5 Stocks

In this article, we discuss the 5 stocks that Jim Cramer recommends selling. If you want to read about some more stocks that Jim Cramer recommends selling, go directly to Jim Cramer Recommends Selling These 10 Stocks.

5. BlackLine, Inc. (NASDAQ:BL)

Number of Hedge Fund Holders: 23   

BlackLine, Inc. (NASDAQ:BL) provides cloud-based solutions to automate finance operations. Jim Cramer gave the stock a Sell recommendation during the Lightning Round of his show on June 7. Answering a question about his views on the company, Cramer said that the firm was losing a lot of money and even though it might make some money next year, “we can just not go with it”. Cramer said he was toeing a hardline on this since the market was too hot for this kind of activity. 

On May 6, JPMorgan analyst Pinjalim Bora maintained an Underweight rating on BlackLine, Inc. (NASDAQ:BL) stock and lowered the price target to $70 from $75, noting that there was caution on the firm as it “switches gears and spends toward growth”. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Echo Street Capital Management is a leading shareholder in BlackLine, Inc. (NASDAQ:BL) with 1.9 million shares worth more than $139 million. 

In its Q4 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and BlackLine, Inc. (NASDAQ:BL) was one of them. Here is what the fund said:

“Blackline’s stock was down, along with other high-growth Software as a Service stocks, during the quarter. While we believe that many of these types of businesses became very over valued earlier this year and their declines this quarter were justified, we think BlackLine, Inc. (NASDAQ:BL) is worth materially more than the current market price. We will be discussing this company at length later in this letter. The stock finished the quarter down 12%.”