In this article, we discuss the 5 stocks getting crushed on Monday. If you want to see some more companies on the list, go directly to These 10 Stocks are Getting Crushed on Monday.
5. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 35
Shares of Lyft, Inc. (NASDAQ:LYFT) plummeted to a nearly two-month low this morning after receiving a downgrade from UBS. The research firm reduced its ratings for the ride-sharing service from “Buy” to “Neutral,” citing a recent survey involving drivers using both Lyft and Uber.
The survey indicated drivers prefer Uber over Lyft as the Uber app offers greater reach, faster boarding process and better earnings opportunities. The research firm also cut its price target for Lyft, Inc. (NASDAQ:LYFT) from $50 per share to $16 per share.
Earlier this year, Lyft, Inc. (NASDAQ:LYFT) appeared in the first-quarter 2022 investor letter of investment management firm Rowan Street Capital LLC. Here’s what the firm said:
“Lyft (NASDAQ:LYFT): We sold Lyft in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”
4. Farfetch Limited (NYSE:FTCH)
Number of Hedge Fund Holders: 39
Shares of Farfetch Limited (NYSE:FTCH) slipped over three percent this morning after Citi issued a “Sell” rating for the online luxury fashion retail platform, citing ambiguities around its profitability.
Citi analyst Guido Lucarelli thinks intensifying competition in the e-commerce market would make it hard for companies, including Farfetch, to improve their margins. Lucarelli set a price target of $6 per share for Farfetch Limited (NYSE:FTCH), compared to the stock’s current trading price of around $8.
The latest coverage comes nearly a month after Farfetch Limited (NYSE:FTCH) revised its operating income guidance for fiscal 2022. The company now looks to achieve break-even adjusted EBITDA for the full year, compared to its previous target of positive adjusted EBITDA.
3. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 42
Shares of Ally Financial Inc. (NYSE:ALLY) moved down in pre-market trading Monday after Piper Sandler analyst Kevin Barker decreased his price target for the bank holding company from $34 per share to $31 per share.
Barker referred to a sharp surge in Fed funds and immense loan growth. He said these factors have significantly raised the funding costs for banks. Barker maintained an “Underweight” rating for Ally Financial Inc. (NYSE:ALLY).
Meanwhile, investment management firm Oakmark Funds also discussed Ally Financial Inc. (NYSE:ALLY) in its second-quarter 2022 investor letter, stating:
“As for Ally Financial, fears of a recession drove the stock price down more than 20% for the period, but business fundamentals have remained strong and the shares now trade for just a mid-single-digit multiple of current earnings. We believe today’s price ignores the funding cost improvements and well-capitalized nature of Ally’s balance sheet. We continue to own both investments given their significant discounts to our estimates of business value.”
2. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 63
Shares of FedEx Corporation (NYSE:FDX) continued their downward movement this morning, hitting a new 52-week low of $143.18. The drop is attributed to the company’s mixed results for Q1 and a disappointing outlook for the current quarter.
FedEx Corporation (NYSE:FDX) recently posted adjusted earnings of $3.44 per share for its fiscal first quarter, above the consensus of $3.35 per share. However, the quarterly revenue of $23.2 billion missed the expectations of $24.01 billion.
For the current quarter, FedEx Corporation (NYSE:FDX) guided for revenue in the range of $23.5 – $24 billion, below analysts’ average estimate of $24.05 billion.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 69
Shares of Micron Technology, Inc. (NASDAQ:MU) slipped over two percent in mid-day trading Monday after receiving a price-target cut from multiple research firms this morning. Evercore ISI reduced its price target for the semiconductor company from $85 per share to $75 per share. Evercore’s analyst C.J. Muse thinks Micron Technology, Inc. (NASDAQ:MU) would post its financial results for the August quarter below expectations.
In addition, Susquehanna analyst Mehdi Hosseini also lowered his price target for Micron Technology, Inc. (NASDAQ:MU) from $68 per share to $60 per share. These price-target cuts have come just ahead of Micron’s fiscal fourth-quarter results.
Micron Technology, Inc. (NASDAQ:MU) is scheduled to report its Q4 earnings after the closing bell on Thursday, September 29, 2022. Analysts expect the company to earn $1.38 per share on revenue of $6.81 billion.
You can also take a peek at Best Battery Stocks To Buy and 10 Best Cyclical Stocks for Inflation.
