These 5 Companies Just Cut Their Guidance

4. SVB Financial Group (NASDAQ:SIVB)

Number of Hedge Fund Holders: 34

SVB Financial Group (NASDAQ:SIVB) is a California-based financial services company that offers diversified banking and financial products and services. The company posted its Q2 results on July 21, reporting earnings per share of $5.60 and a revenue of $1.53 billion, missing consensus estimates by $2.02 and $135.66 million, respectively. 

On July 22, SVB Financial Group (NASDAQ:SIVB) stock plunged 15.5% to a 52-week low. The company was categorized as the most significant S&P 500 loser after a disappointing Q2 led to a full-year guidance cut. Venture capital flows have been declining after they peaked in Q3 2021. They are the biggest source of deposit for the company. In addition to that, there was weaker than forecasted growth in total client funds and higher cash burn rates. Due to poor performance and weak company outlook for the full-year, Jefferies analyst Casey Haire cut his 2022 EPS forecast for SVB Financial Group (NASDAQ:SIVB) by about 15% to $28.95, compared to a consensus of $34.94. Similarly, Wedbush analyst David Chiaverini reduced his EPS estimate for 2022 to $26.00 from $34.95 and Raymond James analyst David Long also slashed his full-year EPS estimate by $2.97 to $31.26. 

According to Insider Monkey’s data, 34 hedge funds were bullish on SVB Financial Group (NASDAQ:SIVB) at the end of Q1 2022, down from 47 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is a prominent shareholder of the company, with 210,581 shares worth $117.81 million. 

Here is what Diamond Hill Mid Cap Fund has to say about SVB Financial Group (NASDAQ:SIVB) in its Q1 2022 investor letter:

“Other bottom contributors included SVB Financial Group (NASDAQ:SIVB). Innovation-economy focused bank SVB Financial Group was doubly punished as financials traded down and the sell-off in technology raised concerns about slower growth for this niche bank in the near term.”