In this article, we will take a look at the top 10 losers on Wednesday.
All three major U.S. indices were spotted hovering between red and green during the mid-day trading session on Wednesday. As of 12:12 PM ET, S&P 500 was negative 0.59 percent, Dow Jones Industrial Average was negative 0.19 percent and Nasdaq Composite was down 0.64 percent. Even better-than-expected earnings reports from giants like Netflix, Inc. (NASDAQ:NFLX) and The Procter & Gamble Company (NYSE:PG) weren’t enough to lift the indices.
Shares of Netflix, Inc. and The Procter & Gamble Company rose sharply this morning after beating profit and sales estimates for their respective quarters. However, many other notable stocks, including Abbott Laboratories (NYSE:ABT), Lowe’s Companies, Inc. (NYSE:LOW) and Ally Financial Inc. (NYSE:ALLY), fell today.
Abbott Laboratories shares plummeted after the healthcare giant reported a drop in its third-quarter profit and sales, while Lowe’s Companies, Inc. shares slid after receiving a downgrade from Evercore ISI. Check out the complete article to see some more stocks on the list of top 10 losers today.
10. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Number of Hedge Fund Holders: 18
Shares of Olaplex Holdings, Inc. (NASDAQ:OLPX) crashed this morning, losing more than 50 percent of their value. The drop came after the beauty company trimmed its sales outlook for the full year, citing macroeconomic challenges, decelerating sales and intensifying competition.
Olaplex Holdings, Inc. guided for revenue in the range of $704 – $711 million for the year, well below its previous projection between $796 – $826 million. The revised outlook also missed the consensus of $816.51 million.
Meanwhile, JPMorgan downgraded Olaplex Holdings, Inc. from “Overweight” to “Underweight,” citing a significant cut in its 2022 sales forecast. The research firm also lowered its price target for the stock from $16 per share to $8 per share.
9. Winnebago Industries, Inc. (NYSE:WGO)
Number of Hedge Fund Holders: 20
Shares of Winnebago Industries, Inc. (NYSE:WGO) dropped more than 10 percent this morning apparently following the company’s comments about uncertain market conditions. Winnebago’s CEO Michael Happe expects uncertain market conditions to continue in fiscal 2023.
The cautious commentary also overshadowed the company’s better-than-expected results for its fiscal fourth quarter. Winnebago Industries, Inc. reported adjusted earnings of $3.02 per share, up from $2.65 per share in the year-ago period and above the consensus of $2.73 per share.
Revenue for the quarter rose 13.8 percent on a year-over-year basis to $1.2 billion, ahead of the consensus of $1.12 billion. Winnebago Industries, Inc. also released the sales performance of its key business units. Revenue from its Towable segment fell 11.8 percent to $494.2 million, while Motorhome revenue jumped 23.8 percent to $555.8 million in the quarter.
8. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 26
Shares of Best Buy Co., Inc. (NYSE:BBY) turned red in pre-market trading Wednesday after receiving a downgrade from Evercore ISI. The research firm lowered its ratings for the consumer electronics retailer from “Outperform” to “In Line.”
Evercore ISI analyst Greg Melich believes elevated inventory levels and deflation could affect the company’s margins in the second half of 2022. The analyst also trimmed his price target for Best Buy Co., Inc. from $80 per share to $70 per share.
Like its peers, Best Buy Co., Inc. shares also lost significant value this year. The stock has plummeted about 35 percent on a year-to-date basis.
7. Northern Trust Corporation (NASDAQ:NTRS)
Number of Hedge Fund Holders: 29
Shares of Northern Trust Corporation (NASDAQ:NTRS) hit a new 52-week low of $77.50 in the mid-day trading session on Wednesday. The drop followed the financial services company’s disappointing profit for the third quarter.
Northern Trust Corporation reported earnings of $1.80 per share, unchanged from the year-ago period and below the expectations of $1.84 billion. Revenue came in at $1.767 billion, nearly in line with the consensus of $1.77 billion.
Discussing the results, CEO of Northern Trust Corporation, Michael O’Grady, said in a statement:
“Northern Trust’s third-quarter results reflected consistent execution in the face of challenging macroeconomic and market conditions. Revenue grew 7% compared to last year, as the elimination of money market fee waivers and the favorable impact from higher interest rates more than offset market and currency-related declines in trust fees. Expenses increased 9% due to higher headcount and continued inflationary cost pressures.”
Besides Northern Trust Corporation, Netflix, Inc., The Procter & Gamble Company and Abbott Laboratories also came into the limelight after releasing their earnings.
6. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 34
Shares of Generac Holdings Inc. (NYSE:GNRC) plummeted over 15 percent in pre-market trading Wednesday after announcing weak financial results for the third quarter. The energy technology solutions provider earned $1.75 per share on an adjusted basis, well below $2.35 per share in the year-ago period.
In addition, Generac Holdings Inc. posted revenue of $1.09 billion, up 15 percent on a year-over-year basis. The results missed the consensus of $3.22 per share for earnings and $1.34 billion for revenue.
Generac Holdings Inc. also slashed its sales outlook for the full year, citing weak residential revenue. It expects to achieve sales growth in the range of 22 – 24 percent for fiscal 2022, down from its previous growth projection between 36 – 40 percent.
5. M&T Bank Corporation (NYSE:MTB)
Number of Hedge Fund Holders: 39
Shares of M&T Bank Corporation fell nearly six percent in the pre-market trading session today after the community-focused bank missed profit expectations for the third quarter.
M&T Bank Corporation reported earnings of $3.83 per share, compared to $3.76 per share in the same period of 2021. However, analysts were looking for earnings of $3.96 per share.
Net interest income for the quarter rose to $1.69 billion, from $971 million in the year-ago period. In comparison, non-interest income slipped to $563 million, from $569 million in the corresponding period of 2021.
Among other updates, M&T Bank Corporation reported that it repurchased $600 million worth of its common stock during the latest quarter.
4. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 40
Shares of Lithia Motors, Inc. (NYSE:LAD) plunged to a new low on Wednesday after posting weak financial results for the third quarter. The Oregon-based automotive dealership group earned $11.08 per share on an adjusted basis, slightly down from $11.21 per share in the year-ago period.
In addition, Lithia Motors, Inc. posted revenue of $7.29 billion, representing a surge of 18.2 percent over the same period of 2021. The results missed the consensus of $12.11 per share for earnings and $7.46 billion for revenue.
Among other key updates, Lithia Motors, Inc. reported that it repurchased about 2.3 shares of its common stock at an average price of around $281 this year.
3. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 42
Shares of Ally Financial Inc. hit a new 52-week low of $25.64 this morning after the bank holding company failed to meet financial expectations for its fiscal third quarter.
Ally Financial Inc. reported adjusted earnings of $1.12 per share, missing the consensus of $1.77 per share with a big margin. Revenue for the quarter came in at $2.02 billion, while analysts were looking for $2.17 billion.
Discussing the results, CEO of Ally Financial Inc., Jeffrey J. Brown, said in a statement:
“Financial results were partially depressed this quarter as a result of an impairment on a nonmarketable equity investment related to our mortgage business, impacting $0.33 of EPS, and higher provisions as a result of loan growth in auto finance and a larger coverage build to ensure the company remains protected as recessionary conditions feel more likely to occur in the coming months.”
2. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 53
Shares of Lowe’s Companies, Inc. slipped over two percent this morning after Evercore ISI lowered its ratings for the home improvement retailer from “Outperform” to “In Line.”
Analyst Greg Melich expressed concerns over decelerating home improvement demand that could affect Lowe’s growth trajectory. Melich also cut his price target for Lowe’s Companies, Inc. from $220 per share to $210 per share.
Separately, asset management firm Baron Funds briefly discussed Lowe’s Companies, Inc. in its second-quarter 2022 investor letter. Here’s what the firm said:
“Lowe’s Companies, Inc. is the second largest home improvement center in the U.S. Its shares declined 33% in the first six months of 2022 and are currently valued at only 13.5 times estimated earnings per share versus a long-term average P/E multiple of approximately 18 times estimated earnings per share.”
1. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 61
Shares of Abbott Laboratories fell nearly five percent before the opening bell today after the healthcare giant reported a drop in its third-quarter profit and sales.
Abbott Laboratories reported adjusted earnings of $1.15 per share, down from $1.40 per share in the year-ago period. Revenue for the quarter also slipped 4.7 percent versus last year to $10.4 billion. Nevertheless, the results surpassed the consensus of 94 cents per share for earnings and $9.64 billion for revenue.
On the bright side, Abbott Laboratories raised its full-year adjusted earnings outlook to a range of $5.17 – $5.23 per share, from its earlier projection of around $4.90 per share.
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