Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What Is Going On With These 5 Falling Stocks?

It’s a red day on Wall Street as all three major indexes are in the red today, along with crude oil. Weighing on sentiment is the news that Saudi Arabia will IPO its state giant, Saudi Aramco, which could be worth $2 trillion or more on the open market. Given that Saudi Arabia plans to float 5% of the company’s shares (or $100 billion at a $2 trillion valuation), some traders are selling now to front run other traders who might sell the S&P 500 and Dow to buy Saudi Aramco shares in the future. Among the stocks deeper in the red than the indexes today are GoPro Inc (NASDAQ:GPRO), TrovaGene Inc (NASDAQ:TROV), Knowles Corp (NYSE:KN), Community Health Systems (NYSE:CYH), and Gerdau SA (ADR) (NYSE:GGB). Let’s find out why investors are selling these stocks and see what top hedge funds think of each of them.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

GoPro Drops on Analyst Comments

GoPro Inc (NASDAQ:GPRO) shares are off by around 4% after analysts at Pacific Crest remained skeptical that GoPro’s recent acquisitions and new software will improve its business enough. The analysts lowered their fiscal year 2016 earnings estimate to a loss of $0.77 per share from a loss of $0.56 per share and also trimmed their fiscal year 2017 earnings estimate to a loss of $0.93 per share from a loss of $0.77 per share, citing weakness in GoPro’s supply chain. One bright note is the expected launch of GoPro’s first drone product, Karma, which should come onto the market around the end of the second quarter. The analysts believe GoPro will sell 5 million-to-6 million of those units globally in the first year. 18 out of the 786 elite funds that Insider Monkey tracks owned shares of GoPro Inc (NASDAQ:GPRO) at the end of December.

Follow Gopro Inc. (NASDAQ:GPRO)
Trade (NASDAQ:GPRO) Now!

Downgrade Weighs on TrovaGene

TrovaGene Inc (NASDAQ:TROV) is more than one-fifth lower today after analysts at Piper Jaffray downgraded TrovaGene’s stock to ‘Neutral’ from ‘Overweight’. The analysts have a new price target of $5.26 on it, whereas they previously had an $8 per share price target. In other news, Trovagene has a new boss, as former Sequenom, Inc. (NASDAQ:SQNM) CEO Bill Welch was named CEO effective immediately. Mr. Welch replaces Dr. Antoium Schuh, who was fired in March due to a breach in fiduciary duty. TrovaGene Inc (NASDAQ:TROV) was in the portfolios of seven of the elite funds that Insider Monkey tracks at the end of the fourth quarter, up one from the end of the previous quarter.

Follow Trovagene Inc. (NASDAQ:TROV)
Trade (NASDAQ:TROV) Now!

On the next page we examine why Knowles Corp, Community Health Systems, and Gerdau SA (ADR) are all sinking today.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.