In this article, we will discuss some of the popular stocks losing on Thursday.
The US stock market is mixed today as the investors are positively processing the earnings of notable companies despite the lingering concern related to the interest rate hike by the Federal Reserve and rising inflation. The S&P 500 and the Dow 30 Index are up 0.19% and 0.34%, respectively. Meanwhile, the NASDAQ Composite Index is down 0.1% as of 11:50 AM ET. Some of the stocks losing today include Shopify Inc. (NYSE:SHOP), Dover Corporation (NYSE:DOV), and Etsy, Inc. (NASDAQ:ETSY).
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Let’s look at why these stocks are losing today and discuss how hedge funds are positioned in them.
10. Netflix, Inc. (NASDAQ:NFLX) has plummeted over 5.65% as of 11:51 AM ET after the Los Gatos, California-based streaming giant was downgraded from a Hold to a Buy rating by David Heger at Edward Jones following the Q1 2022 miss. Furthermore, Netflix, Inc. (NASDAQ:NFLX) stock was also downgraded from a Buy to a Hold rating by Manuel Muehl at DZ Bank with a price target of $280. Netflix, Inc. (NASDAQ:NFLX) fell to a 52-week low of $212.51 yesterday following the Q1 2022 results.
According to data compiled by Insider Monkey, Netflix, Inc. (NASDAQ:NFLX) was in the portfolio of 113 hedge funds as of Q4 2021, with a combined value of $14.47 billion. Beech Hill Partners had a stake worth over $3 million in Netflix, Inc. (NASDAQ:NFLX) during Q1 2022.
9. Xerox Holdings Corporation (NASDAQ:XRX) has fallen 16.12% as of 11:51 AM ET after the Norwalk, Connecticut-based seller of print and digital document products and services missed its Q1 2022 earnings estimates as higher costs impacted the bottom line adversely. Although revenue declined by 2.5% YoY to $1.67 billion, it outperformed the consensus estimates of $1.63 billion. However, Xerox Holdings Corporation (NASDAQ:XRX) reported a non-GAAP loss of 12 cents. Meanwhile, the analysts anticipated Xerox Holdings Corporation (NASDAQ:XRX) to report a non-GAAP profit of 13 cents. One of the few positive takeaways was the better-than-expected guidance for FY22, as the company anticipates revenue of $7.1 billion as opposed to the analysts’ estimates of $7.05 billion.
Out of the 924 hedge funds covered by Insider Monkey, 23 funds held a stake in Xerox Holdings Corporation (NASDAQ:XRX) as of Q4 2021.
8. Equifax Inc. (NYSE:EFX) is down 6.29% as of 11:51 AM ET after the Atlanta, Georgia-based consumer rating agency was downgraded from an Outperform to an In-Line rating by David Togut at Evercore ISI. Furthermore, the analyst slashed the target price on Equifax Inc. (NYSE:EFX) by over 41% to $200 and also removed the stock from the Top Picks List for 2022. Equifax Inc. (NYSE:EFX) lowered its 2022 revenue guidance by $100 million to incorporate the impact of the faster-than-expected decline in the mortgage market credit inquiries. Equifax Inc. (NYSE:EFX) also slashed its EPS guidance by 50 cents due to a decline in revenue and the flow of income from non-controlling interest in its joint venture in Russia.
As of Q4 2021, Equifax Inc. (NYSE:EFX) was held by 41 hedge funds.
7. Alcoa Corporation (NYSE:AA) has declined over 12.32% as of 11:52 AM ET after the Pittsburgh, Pennsylvania-based aluminum producer was downgraded from a Buy to a Neutral rating by Alexander Hacking at Citi with a price target of $84. The target price assumes a downside of over 3.3% from yesterday’s closing price. The Citi global commodity team is getting off the aluminum bull train. The analyst thinks that Alcoa Corporation’s (NYSE:AA) stock is now fairly valued, following the 100% appreciation in the stock price in the last year and a 50% rise since the start of 2022. Hacking also added that the restart of the Chinese smelters along with weak demand due to the Chinese lockdown and inflation globally could result in a near-term cap on Alcoa Corporation’s (NYSE:AA) stock price.
Overall, Alcoa Corporation (NYSE:AA) was held by 41 hedge funds at the end of the fourth quarter. Fisher Asset Management was long over 6 million shares of Alcoa Corporation (NYSE:AA) during Q4 2021.
6. Carvana Co. (NYSE:CVNA) has lost 5.91% of its market value as of 11:52 AM ET after the target price of the Tempe, Arizona-based online used car retailer was slashed by over 38.4% to $85 by Brad Erickson at RBC Capital. The analyst maintained a Sector Perform rating on Carvana Co. (NYSE:CVNA) stock. He stated that the Q1 2022 results highlighted ‘everything feared.’ Furthermore, the share offering of $1 billion leaves a low margin of error for Carvana Co. (NYSE:CVNA), which is trying to achieve a ‘lofty’ long-term vision. Erickson thinks that he needs to see more unit growth to justify the hyper-growth trajectory adopted by Carvana.
As of Q4 2021, Carvana Co. (NYSE:CVNA) was in the portfolio of 56 hedge funds.
In addition to Carvana Co. (NYSE:CVNA), some other companies losing today include Shopify Inc. (NYSE:SHOP), Dover Corporation (NYSE:DOV), and Etsy, Inc. (NASDAQ:ETSY).
5. Shopify Inc. (NYSE:SHOP) has slumped 5.42% as of 11:52 AM ET after the target price of the Canadian e-commerce company was lowered by over 26.4% to $625 by Darren Aftahi at Roth Capital. The target price reflects a modest upside of over 19% from yesterday’s closing price. Despite the significant cut in the target price, the analyst maintained a Neutral rating on Shopify Inc. (NYSE:SHOP) stock and highlighted that the risk and reward are not very attractive ahead of the quarterly results expected on May 5. ARK Investment Management was the leading investor in Shopify Inc. (NYSE:SHOP) during Q1 2022.
Of the 924 hedge funds in Insider Monkey’s database, Shopify Inc. (NYSE:SHOP) was held by 86 hedge funds as of Q4 2021.
4. Dover Corporation (NYSE:DOV) has slid by over 7.43% as of 11:53 AM ET as the Illinois-based manufacturer of industrial products failed to impress the analysts with its FY 2022 revenue and EPS guidance. For FY22, Dover Corporation (NYSE:DOV) anticipates revenue growth of 8% to 10%, as opposed to the analysts’ forecasted growth of 9.3% to $8.64 billion. Meanwhile, Dover Corporation (NYSE:DOV) anticipates EPS to be around $8.45, compared to the analysts’ forecast of $8.57.
As of Q4 2021, Dover Corporation (NYSE:DOV) was held by 30 hedge funds.
3. Generac Holdings Inc. (NYSE:GNRC) has fallen 6.46% as of 11:52 AM ET after the target price of the Wisconsin-based manufacturer of backup power generation was slashed down by over 26.1% from $474 to $350 by Kashy Harrison at Piper Sandler. The target price still reflects a healthy potential upside of over 34.7% from the last closing price. The analyst maintained an Overweight rating on Generac Holdings Inc. (NYSE:GNRC) stock. Harrison commented that during the earnings season, he is more focused on the post-war demand trajectory, inflation, supply chain-related concerns, and policy decisions that could have an impact on the long-term outlook of Generac Holdings Inc. (NYSE:GNRC).
Overall, 46 hedge funds reported owning a stake in Generac Holdings Inc. (NYSE:GNRC) at the end of Q4 2021.
2. Freeport-McMoRan Inc. (NYSE:FCX) has declined over 6.68% as of 11:53 AM ET after the Phoenix, Arizona-based copper miner reduced its copper forecast for 2022 and 2023 despite outperforming the analysts’ estimates for Q1 2022. Following the results, Matthew Murphy at Barclays posted a research report. The analyst gave Freeport-McMoRan Inc. (NYSE:FCX) stock a price target of $29 with an Underweight rating. The target price assumes a downside of over 41.8% from the last closing price. The analyst highlighted that a global recession appears unlikely, but multiple headwinds would restrict growth. He thinks that the supply of copper is in surplus and investors should be prepared to moderate growth with a possibility of margin compression.
As of Q4 2021, 66 hedge funds held a stake in Freeport-McMoRan Inc. (NYSE:FCX).
1. Etsy, Inc. (NASDAQ:ETSY) is down 4.29% as of 11:54 AM ET after the target price of the New York-based e-commerce company focused on handmade or vintage items and craft supplies was slashed by over 17.8%. The target price on Etsy, Inc. (NASDAQ:ETSY) was lowered from $140 to $115 at Loop Capital. The target price assumes a slim upside potential of just over 7% from the last closing price. Etsy, Inc.’s (NASDAQ:ETSY) earnings are expected to come under pressure due to the macroeconomic environment.
Of the 924 hedge funds in Insider Monkey’s database, Etsy, Inc. (NASDAQ:ETSY) was held by 47 hedge funds as of Q4 2021.
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Disclose. None. Top 10 Losers Today is originally published on Insider Monkey.
