In this article, we will take a look at the 10 stocks that are falling today.
All three major U.S. indices marginally moved up on Wednesday morning, a day after plummeting sharply on the consumer price index (CPI) report. Tuesday’s drop was primarily attributed to CPI data that showed inflation ticked up 0.1 percent in August.
The latest surge in CPI fueled investors’ concerns about a further hike in interest rates by the Federal Reserve that could negatively affect the stocks. Meanwhile, economics experts are divided on where the stock market is heading. Some expect inflation to cool down and drive the markets, while others anticipate a new dip.
Now, let’s have a look at the notable losers of this morning. Railroad stocks, including Union Pacific Corporation (NYSE:UNP) and CSX Corporation (NASDAQ:CSX), moved down ahead of a potential strike from workers. The railroad worker unions are seeking a new contract and have threatened to strike if an agreement is not reached by the end of this week.
In addition, Block, Inc. (NYSE:SQ), Altimmune, Inc. (NASDAQ:ALT) and Nucor Corporation (NYSE:NUE), were also among the top losers on Wednesday. We will discuss the reasons behind the downward movement of these stocks in the remaining article.
Photo by Adam Nowakowski on Unsplash
10. Innovid Corp. (NYSE:CTV)
Number of Hedge Fund Holders: 8
Shares of Innovid Corp. (NYSE:CTV) lost more than 12 percent of their value on Wednesday morning after Morgan Stanley issued an “Underweight” rating for the independent advertising platform.
Morgan Stanley analyst Brian Nowak thinks the company’s growth opportunities are already mirrored in its stock price. He set a price target of $2.70 per share for Innovid Corp.. Moving forward, Nowak also expects negative sales revisions amid a potential deterioration in the macro environment.
Innovid Corp. shares have struggled to advance this year. The stock has lost nearly 57 percent of its value so far in 2022.
9. Vintage Wine Estates, Inc. (NASDAQ:VWE)
Number of Hedge Fund Holders: 10
Shares of Vintage Wine Estates, Inc. (NASDAQ:VWE) plunged nearly 40 percent this morning after issuing a weak sales outlook for its fiscal year 2023. The producer of alcoholic beverages expects to generate revenue in the range of $300 – $310 million, below the consensus of $330.37 million.
Vintage Wine Estates, Inc. received a downgrade from Canaccord following its gloomy guidance. The research firm lowered its ratings for the Nevada-based company from “Buy” to “Hold” and cut its price target from $15 to $5.50.
The company issued the forecast along with its fiscal fourth-quarter results. Vintage Wine Estates, Inc. earned 17 cents per share on an adjusted basis, topping estimates of 14 cents.
Revenue for the quarter climbed 32 percent versus last year to $75.54 million, ahead of the expectations of $74.24 million. Vintage Wine Estates, Inc. also released its segment-wise sales results. Its direct-to-consumer revenue jumped 29 percent to $23.1 million, B2B revenue climbed 55 percent to $30.6 million and wholesale revenue rose 23 percent to $21.6 million in the quarter.
Like Vintage Wine Estates, Inc., shares of Union Pacific Corporation, CSX Corporation and Block, Inc. also fell this morning.
8. POINT Biopharma Global Inc. (NASDAQ:PNT)
Number of Hedge Fund Holders: 13
Shares of POINT Biopharma Global Inc. (NASDAQ:PNT) dived over 10 percent after the opening bell today. The drop came after the clinical-stage pharmaceutical firm announced an underwritten public offering of 13.9 million shares of its common stock.
POINT Biopharma Global Inc. plans to offer the stock at $9 apiece. It has also given underwriters a one-month option to acquire an additional 2.085 million shares. The company has hired Piper Sandler and Guggenheim Securities as mutual book runners for the offering.
The company expects to generate about $125 million from the sale, excluding commissions and other related costs. POINT Biopharma Global Inc. plans to use the capital primarily to fund its clinical research and other development programs.
7. Flowserve Corporation (NYSE:FLS)
Number of Hedge Fund Holders: 13
Shares of Flowserve Corporation (NYSE:FLS) slipped over two percent this morning after releasing an update related to its third quarter. The company said it employed a new enterprise resource planning system in certain manufacturing and response centers across North America at the start of Q3.
Flowserve Corporation added that it faced challenges while implementing the new system. Those challenges negatively affected its volumes during the quarter. Moreover, the company also cautioned about an unexpected surge in corporate costs. Flowserve Corporation expects these factors to drag its Q3 adjusted earnings by 18 – 22 cents per share.
On the bright side, Flowserve Corporation said it enjoyed solid bookings momentum in the third quarter. The company projected bookings of over $1 billion for Q3.
6. Li-Cycle Holdings Corp. (NYSE:LICY)
Number of Hedge Fund Holders: 15
Shares of Li-Cycle Holdings Corp. (NYSE:LICY) turned red in pre-market trading Wednesday after the lithium-ion batteries recycler posted lower-than-expected results for its fiscal third quarter.
Li-Cycle Holdings Corp. reported an adjusted loss of 16 cents per share, wider than analysts’ average estimate for a loss of 12 cents. Revenue came in at $1.97 million, missing the expectations of $10.63 million.
Looking forward, Li-Cycle Holdings Corp. now expects black mass production in the range of 3,500 – 3,800 tonnes for its fiscal year 2022.
Speaking on the results, CEO Ajay Kochhar said in a statement:
“We continue to see robust battery supply from our global customers and are making strides in strategically advancing our Spoke & Hub network to align with their growing needs. The recent enactment of the Inflation Reduction Act in the U.S. is yet another meaningful tailwind for our Spoke & Hub business model.”
5. Altimmune, Inc. (NASDAQ:ALT)
Number of Hedge Fund Holders: 27
Altimmune, Inc. announced positive results from its Phase 1b trial of pemvidutide this morning. Yet, its shares took a deep dive after the opening bell on Wednesday, losing more than 40 percent of their value.
The drop came even after Altimmune, Inc. reported that it achieved its key targets in patients with non-alcoholic fatty liver disorder (NAFLD). According to Altimmune, Inc., the study also achieved the secondary goal of weight loss in all three groups.
Pipe Sandler said it was “surprised” to see the market reacting negatively to ALT’s results. The investment firm said the reaction was perhaps due to the 4.7% weight-loss reported in the study which came in below Street estimates.
Discussing the trial’s results, CEO of Altimmune, Inc., Vipin K. Garg, said in a statement:
“We are pleased with the results of this trial, including the extent of liver fat and serum ALT reductions. Weight loss was within our target range, and good tolerability was observed without the need for dose titration.”
4. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 32
Shares of Nucor Corporation fell nearly six percent in the pre-market trading session today. The drop came after the steel producer issued a weak profit outlook for its fiscal third quarter.
Nucor Corporation guided for earnings in the range of $6.30 – $6.40 per share, compared to $7.28 per share in the corresponding period of 2021. The guidance also missed the consensus of $7.56 per share.
The company said profit from its steel mills business is expected to drop sharply in the third quarter on a sequential basis. Nucor Corporation blamed lower shipping volumes and margin contraction for the weakness.
3. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 63
Shares of CSX Corporation dropped over three percent in mid-day trading Wednesday after Bernstein lowered its ratings for the rail-based freight transportation provider from “Outperform” to “Market perform.”
Bernstein analyst David Vernon referred to the macro challenges that could impact the top-line growth and margins of railroad companies, including CSX Corporation.
At the same time, Vernon acknowledged the decent valuations and improving volume trends in the railroad industry. He issued a price target of $32 per share for CSX Corporation, compared to the stock’s current trading price of around $31.
2. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 65
Shares of Union Pacific Corporation declined nearly five percent this morning ahead of a potential strike from railroad workers.
The U.S. railroad employees have been negotiating with the leading railroad companies, including Union Pacific Corporation, over a new union contract. However, they haven’t reached a settlement as of now.
The railroad worker unions are calling for a strike if no agreement is reached by the weekend. The railroad companies, including Union Pacific Corporation, are already grappling with staff shortages and a potential strike could significantly hurt their business.
1. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 72
Shares of Block, Inc. slid nearly four percent in pre-market trading Wednesday after Evercore ISI downgraded the financial services company from “Outperform” to “Underperform.”
Evercore ISI analyst David Togut pointed towards increasing challenges for Block’s seller and buy now, pay later (BNPL) segments. Togut believes intensifying competition and decelerating macroeconomic growth would weigh on these segments. He also trimmed his price target for Block, Inc. from $120 per share to $55 per share.
Separately, Block, Inc. also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
You can also take a peek at Best Cybersecurity Stocks to Buy Now and 10 Best Cyclical Stocks for Inflation.
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This article is originally published at Insider Monkey.
