Stock Market Recession 2022: 5 Stocks to Sell Now According to Analysts

In this article, we discuss 5 stocks to sell now according to analysts. If you want to see our stock market discussion and more stocks to discard, click Stock Market Recession 2022: 10 Stocks to Sell Now According to Analysts.

5. iRobot Corporation (NASDAQ:IRBT)

Number of Hedge Fund Holders: 15

iRobot Corporation (NASDAQ:IRBT) is a Massachusetts-based provider of robots and home innovation products in the United States, Europe, the Middle East, Africa, Japan, and international markets. Since home innovation products are considered to be discretionary rather than staples, demand is likely to fade during recession. 

JPMorgan analyst Paul Chung on May 6 downgraded iRobot Corporation (NASDAQ:IRBT) to Underweight from Neutral with a price target of $45, down from $65, after the company’s Q1 results were posted. According to the analyst, iRobot Corporation (NASDAQ:IRBT)’s Q2 guidance was decidedly lower than forecasts and fiscal 2022 guidance was slashed due to ongoing softness in Europe. Higher promotional spend is also expected to weigh on margins. The analyst sees risks to achieving the “even more back end loaded than usual” outlook due to limited visibility. According to Paul Chung, iRobot Corporation (NASDAQ:IRBT) has restricted opportunities to increase prices in Europe, the Middle East, and Africa to offset the strengthening U.S. dollar given the “increasing elasticity of demand”.

Among the hedge funds tracked by Insider Monkey, 15 funds were bullish on iRobot Corporation (NASDAQ:IRBT) at the end of Q4 2021, with collective stakes worth $25 million, compared to 14 funds in the last quarter, with stakes in the company valued at $38.5 million. D E Shaw is a notable shareholder of iRobot Corporation (NASDAQ:IRBT), with 84,271 shares worth $5.5 million.