These 5 Stocks Can Crash After Federal Reserve’s Latest Rate Hike

4. Expedia Group, Inc. (NASDAQ:EXPE)

Debt-to-Equity Ratio: 3.52

Number of Hedge Fund Holders: 80

Expedia Group, Inc. (NASDAQ:EXPE) is an online travel shopping company. The company provides reservation services for travelers such as flights, hotels, and rental cars, among others. Expedia Group, Inc. (NASDAQ:EXPE) is an industry leader, but its profits can tank as the Fed tightens and consumers cut down on their discretionary spending.

Expedia Group, Inc. (NASDAQ:EXPE) released its second-quarter 2022 balance sheet on August 4. The company’s total debt currently sits at $7.06 billion, and its debt-to-equity ratio is estimated to be 3.52. The company has trailing twelve-month cash flows of roughly $3 billion, but high interest rates can drain these cash flows and make the stock suffer. As of September 19, Expedia Group, Inc. (NASDAQ:EXPE) has crashed 44% year to date.

On September 12, DA Davidson analyst Tom White slashed his price target on Expedia Group, Inc. (NASDAQ:EXPE) to $122 from $195 and maintained a Neutral rating on the shares. White sees macroeconomic headwinds and inflation impacting the stock as consumers cut their travel spending into 2023.

Insider Monkey found 80 hedge funds long Expedia Group, Inc. (NASDAQ:EXPE) at the end of Q2 2022. The total stakes of these hedge funds amounted to $3.01 billion, down from $633.7 billion in the previous quarter with 88 positions. The hedge fund sentiment for the stock is negative.

As of June 30, D1 Capital Partners is the largest shareholder in Expedia Group, Inc. (NASDAQ:EXPE) and owns roughly 6 million shares of the company. The investment covers 13.82% of the fund’s 13F portfolio.

Here is what Carillon Tower Advisers had to say about Expedia Group, Inc. (NASDAQ:EXPE) in its second-quarter 2022 investor letter:

“Online travel company Expedia Group, Inc. (NASDAQ:EXPE) underperformed after posting quarterly results that were slightly below market expectations. The company’s results were negatively impacted by the omicron variant early on in the quarter and then later the war in Ukraine. Despite this, positive forward commentary from the company noted a recovery in booking trends that point toward these issues being temporary.”