In this article, we will discuss 10 stocks losing ground on Wednesday.
US stocks are declining on Wednesday as weaker-than-expected results from major retailers are causing downward pressure on the overall markets. Investors are also processing the Federal Reserve’s intent of controlling rising inflation through an interest rate hike. As of 11:56 AM ET, the S&P 500 Index, the Dow 30 Index, and the NASDAQ Composite Index are all down 2.84%, 2.41%, and 3.29%, respectively. Some popular stocks losing today include Walmart, Inc. (NYSE:WMT), Twitter, Inc. (NASDAQ:TWTR), and Doximity, Inc. (NYSE:DOCS).
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Let’s look at why these stocks are declining today and discuss how hedge funds are positioned in them.
10. Target Corporation (NYSE:TGT) has lost 24.11% of its value as of 11:50 AM ET after the Minneapolis, Minnesota-based big-box retailer revealed that its quarterly bottom line was adversely impacted by supply chain disruptions, increase in fuel costs, and lower than anticipated sales of discretionary goods like bicycles and TV. This caused Target Corporation (NYSE:TGT) to miss its EPS estimate for the quarter and report the biggest one-day decline in the stock price in over three decades. Target Corporation (NYSE:TGT) maintained its mid-single-digit revenue growth guidance but did not share an EPS forecast for this year after falling to a new 52-week low during trading today.
Out of the 924 hedge funds covered by Insider Monkey, 49 funds held a stake in Target Corporation (NYSE:TGT) as of Q4 2021.
9. Lowe’s Companies, Inc (NYSE:LOW) is 4.75% in the red as of 11:50 AM ET after the North Carolina-based home improvement retailer failed to surpass top-line estimates for the quarter as cooler spring weather caused people to abandon outdoor do-it-yourself (DIY) projects. Lowe’s Companies, Inc (NYSE:LOW) saw its revenue decline by 3.1% YoY to $23.66 billion, missing consensus estimates by $100 million. However, the company maintained its annual revenue guidance of $97 billion to $99 billion. The results reported by Lowe’s Companies are in contrast to what Home Depot, Inc. (NYSE:HD) reported as the Atlanta, Georgia-based home improvement retailer surpassed revenue and earnings estimate for the quarter and attributed it to a rise in projects for housing contractors.
Pershing Square was the leading hedge fund investor in Lowe’s Companies, Inc (NYSE:LOW) during Q1 2022. As of Q4 2021, 72 hedge funds held a stake in Lowe’s Companies, Inc (NYSE:LOW), with a combined value of $6.87 billion.
8. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) has fallen 4.56% as of 11:50 AM ET after the Boston, Massachusetts-based biotech corporation involved in the development of a cell programming platform was downgraded from a Neutral to an Underperform rating by Derik de Bruin at Bank of America. The analyst also lowered the target price on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to $3 from $6. The revised target price shows a slim potential upside of 9.74%% from the last closing price. Bruin does not see upside potential in the short and medium-term, but he remains positive on the long-term outlook of the platform offered by Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) and the synthetic biology industry.
As of Q4 2021, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) was held by 30 hedge funds.
7. Tesla, Inc. (NASDAQ:TSLA) has plummeted 3.87% as of 11:52 AM ET after the target price of the Austin, Texas-based electric vehicle (EV) company was slashed from $1,260 to $1,035 by Alexander Potter at Piper Sandler. The analyst slashed his estimates to reflect the impact of COVID-related lockdowns in China. Potter added that the operational prowess of Tesla, Inc. (NASDAQ:TSLA) was on complete display during Q1 2022, but it will worsen during Q2. The opening of new facilities in Texas and Germany will drag down margins, and Tesla, Inc. (NASDAQ:TSLA) will face another headwind due to the lockdown in Shanghai. However, the analyst termed the stock as a “cornerstone holding” in any “advanced mobility” portfolio.
According to Insider Monkey’s proprietary data, 91 hedge funds held a stake in Tesla, Inc. (NASDAQ:TSLA) as of Q4 2021.
6. Comstock Resources, Inc. (NYSE:CRK) has slid 6.77% as of 11:52 AM ET after the Frisco, Texas-based oil and gas exploration and production (E&P) firm was downgraded from a Neutral to an Underweight rating by Mark Lear at Piper Sandler. Lear slashed the target price on Comstock Resources, Inc. (NYSE:CRK) from $19 to $16. The analyst anticipates the company’s projected returns, cash flow, and capital return to be severely impacted by the cost inflation and rising interest rates.
Overall, Comstock Resources, Inc. (NYSE:CRK) was held by 19 hedge funds as of Q4 2021. D E Shaw was the leading hedge fund investor in Comstock Resources, Inc. (NYSE:CRK) during Q1 2022.
In addition to Comstock Resources, Inc. (NYSE:CRK), some other notable losers today include Walmart, Inc. (NYSE:WMT), Twitter, Inc. (NASDAQ:TWTR), and Doximity, Inc. (NYSE:DOCS).
5. Century Aluminum Company (NASDAQ:CENX) has crashed 13.49% as of 11:53 AM ET after the Illinois-based producer of standard-grade and value-added primary aluminum products was downgraded from an Outperform to a Market Perform rating by Timna Tanners at Wolfe Research. The analyst reduced the price target on Century Aluminum Company (NASDAQ:CENX) by more than half to $14, as opposed to $30 previously. The analyst thinks that Century Aluminum Company (NASDAQ:CENX) is heavily exposed to a decline in spot prices that can worsen during the summer months.
As of Q4 2021, 19 hedge funds reported owning a stake in Century Aluminum Company (NASDAQ:CENX).
4. Baudax Bio, Inc. (NASDAQ:BXRX) has crashed 29% as of 1:51 PM ET after the company announced a registered direct offering of $2 million. The pharmaceutical company shared that it had finalized an agreement with institutional investors for the sale of 1,646,091 shares of Baudax Bio, Inc.’s (NASDAQ:BXRX) common stock. The shares would be offered at a purchase price of $1.215 per share.
Overall, 4 hedge funds held a stake in Baudax Bio, Inc. (NASDAQ:BXRX) at the end of Q4 2021. Alyeska Investment Group was the leading hedge fund investor in Baudax Bio, Inc. (NASDAQ:BXRX) during Q1 2022.
3. Walmart Inc. (NYSE:WMT) has declined 7.06% as of 11:54 AM ET after the target price of the Arkansas-based company was lowered from $160 to $153 by Steven Shemesh at RBC Capital. The analyst expressed concern about the rising general merchandise inventory levels and trade-down by consumers. Shemesh thinks inflation-led pricing will continue to support Walmart Inc.’s (NYSE:WMT) top-line growth in the short term, but the elasticity levels need to be observed in more discretionary segments. Moreover, Walmart Inc.’s (NYSE:WMT) Q1 2022 results missed the analysts’ earnings estimates. The company also reduced its full-year forecast due to supply chain disruptions and rising inflation.
Walmart Inc. (NYSE:WMT) was held by 63 hedge funds as of Q4 2021.
2. Twitter, Inc. (NASDAQ:TWTR) is 3.18% lower as of 11:55 AM ET following mixed reports about its acquisition by Tesla’s CEO Elon Musk. Musk has publicly revealed his reservations about acquiring Twitter, Inc. (NASDAQ:TWTR) after issues related to automated bots and fake users came to light during the most recent quarterly results. However, reports suggest that both parties are working on closing the deal. The first signal of the agreement moving forward is the 139-page filing that revealed how the deal came together and why Twitter, Inc. (NASDAQ:TWTR) decided to accept the $54.20 per share in cash bid from Musk.
As of Q4 2021, 83 hedge funds were invested in Twitter, Inc. (NASDAQ:TWTR).
1. Doximity, Inc. (NYSE:DOCS) has diminished 12.36% as of 11:55 AM ET after the target price of the San Francisco, California-based online social platform for medical professionals was decreased from $70 to $45 by Scott Berg at Needham. The analyst revised the price target following Doximity, Inc. (NYSE:DOCS) Q1 FY23 guidance. The company anticipates revenue and earnings to decline on a sequential basis due to normalization post-COVID. However, the analyst thinks that the sell-off following the company’s quarterly results reflects an overreaction by investors.
Of the 924 hedge funds in Insider Monkey’s database, Doximity, Inc. (NYSE:DOCS) was held by 33 hedge funds as of Q4 2021.
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Disclose. None. Top 10 Losers on Wednesday is originally published on Insider Monkey.
