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%.”
4. Allegiant Travel Company (NASDAQ:ALGT)
Number of Hedge Fund Holders: 24
Allegiant Travel Company (NASDAQ:ALGT) is a Nevada-based leisure travel company. The journalist investor gave the stock a Sell recommendation during the Lightning Round of his show on June 2. In response to a viewer question about his views on the stock, Cramer said that he would rather be invested in established travel stocks like Expedia or Airbnb than Allegiant.
In early April, Barclays analyst Brandon Oglenski maintained a Buy rating on Allegiant Travel Company (NASDAQ:ALGT) stock and lowered the price target to $220 from $275, noting that fuel and labor expenses were climbing for travel firms.
At the end of the first quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $230 million in Allegiant Travel Company (NASDAQ:ALGT), the same as in the previous quarter worth $293 million.
In its Q2 2021 investor letter, Wasatch Global Investors, an asset management firm, highlighted a few stocks and Allegiant Travel Company (NASDAQ:ALGT) was one of them. Here is what the fund said:
“Allegiant Travel Company (NASDAQ:ALGT) was also a large detractor. Allegiant offers airline flights, hotel bookings, car rentals, travel management and other related services. When the stock price declined in 2020, we performed more research on the company. Although other travel-related competitors were facing dire circumstances, Allegiant wasn’t forced to raise dilutive equity or take government money. Since then, Allegiant has strengthened its relationships with pilots and crews and has positioned itself to benefit from leisure travel—which should accelerate sooner than business travel. Although we didn’t purchase the company as a way to take advantage of the economic reopening, the stock did get a boost from economy-related optimism in the first quarter. During the second quarter, the stock simply gave back some of its gains but we still like the company’s fundamentals from a risk/reward perspective.”
3. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 30
Joby Aviation, Inc. (NYSE:JOBY) is an air mobility firm. Cramer gave the stock a Sell recommendation during the Lighting Round of his show on June 2. Cramer was sarcastic in his reply to a question about his views on the firm. He remarked, “You think it is time for flying cars?” and suggested that viewers should sell the stock.
On April 28, JPMorgan analyst Bill Peterson initiated coverage of Joby Aviation, Inc. (NYSE:JOBY) stock with a Neutral rating and a price target of $7, noting that the early leadership of the firm in the EV space was generally reflected in the stock.
At the end of the first quarter of 2022, 30 hedge funds in the database of Insider Monkey held stakes worth $79 million in Joby Aviation, Inc. (NYSE:JOBY), compared to 23 in the preceding quarter worth $134 million.
2. Farfetch Limited (NYSE:FTCH)
Number of Hedge Fund Holders: 45
Farfetch Limited (NYSE:FTCH) is a UK-based firm that owns and runs an online marketplace for luxury fashion goods. Cramer gave the stock a Sell recommendation during the Lighting Round of his show on June 7. Cramer identified Target as a much better buy in the sector compared to Farfetch when asked for his opinion on the stock.
On May 27, Wedbush analyst Tom Nikic maintained a Neutral rating on Farfetch Limited (NYSE:FTCH) stock and lowered the price target to $8 from $16, noting that the macro headwinds for the firm could have duration.
At the end of the first quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $899 million in Farfetch Limited (NYSE:FTCH), compared to 47 in the previous quarter worth $2 billion.
In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Farfetch Limited (NYSE:FTCH) was one of them. Here is what the fund said:
“We also initiated a position in global luxury fashion e-commerce marketplace Farfetch Limited (NYSE:FTCH) in the first quarter and took advantage of meaningful weakness in the company’s share price during the period. Farfetch previously had too large a market cap for the Portfolio, but it has since moved to a level where it’s appropriate to own it – both in this Portfolio and in our smid-cap strategy. The company’s fundamentals remain attractive as indicated by the compelling results Farfetch reported in February.
The company remains an early mover with “the world’s only truly global marketplace for luxury at scale”. Farfetch Limited (NYSE:FTCH) has broader reach around the world with a diversity of brands that is much larger than its competitors. Many of the items it sells are exclusive. Our research shows that its brand assortment, brand image, geographic breadth, an inventory-light business model, a more compelling offering for luxury partners, and artificial intelligence are all competitive edges for the company. We believe Farfetch is well-positioned for the continued market share shift from offline to online in this category. The personal luxury goods market has trailed other categories in online penetration, but consumer behaviors and preferences shifted as a result of the pandemic creating more comfort with purchasing goods like this online. Changed behavior and the general shift to a higher portion of Millennial and Gen Z luxury shoppers supports this continued shift as does the growth in emerging market demand.”
1. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 57
Enphase Energy, Inc. (NASDAQ:ENPH) markets home energy solutions and has operations across the world. Cramer gave the stock a Sell recommendation during the Lighting Round of his show on June 8. He claimed that the stock was too expensive and there were many “better stocks” in the sector to choose from.
On April 27, Craig-Hallum analyst Eric Stine maintained a Buy rating on Enphase Energy, Inc. (NASDAQ:ENPH) stock and lowered the price target to $213 from $241, noting the broader multiple compression in the sector as one of the reasons behind the revised target.
At the end of the first quarter of 2022, 57 hedge funds in the database of Insider Monkey held stakes worth $749 million in Enphase Energy, Inc. (NASDAQ:ENPH), compared to 50 the preceding quarter worth $763 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Enphase Energy, Inc. (NASDAQ:ENPH) was one of them. Here is what the fund said:
“Enphase Energy, Inc. (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
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