Although crude oil is well in the green and all three indexes are moderately positive, MiMedx Group Inc (NASDAQ:MDXG), Odyssey Marine Exploration Inc (NASDAQ:OMEX), PHH Corporation (NYSE:PHH), National-Oilwell Varco, Inc. (NYSE:NOV), and Under Armour Inc (NYSE:UA) have each declined notably on Monday for various reasons. Let’s take a closer look and see what the smart money investors tracked by Insider Monkey think of each stock.
At Insider Monkey, we track around 785 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
It’s been a disappointing Monday for MiMedx Group Inc (NASDAQ:MDXG) shareholders after the company announced weaker-than-expected preliminary first quarter results, sending shares down by 11.5% today. MiMedx now expects revenue of $53.4 million for the quarter versus the company’s previous guidance of $55.4 million. If revenue falls short, MiMedx’s net margin will have to rise further-than-expected in order for the company to meet EPS expectations. The company will report its complete first quarter results on the 26th of this month.
CEO Parker H. “Pete” Petit had this to say concerning his company’s quarterly performance:
“We are disappointed that our revenue fell short of our forecasted guidance by about two million dollars. After seventeen straight quarters of meeting or exceeding our revenue guidance, we had our first miss. Three key issues contributed to our first quarterly revenue shortfall. The principal one of these was the initial effects that our installation of a very sophisticated Sales Management System (SMS) had on our sales organization. The second issue related to our first quarter movement and realignment of certain sales management to prepare our surgical business for more autonomous growth. The last of the contributing issues was the distraction to our core business resulting from the initial assimilation of Stability Biologics into the organization.”
12 elite funds tracked by Insider Monkey, including Steve Cohen‘s Point72 Asset Management, held a cumulative 2.6% of the company’s float at the end of December.
Shares of deep-ocean explorer Odyssey Marine Exploration Inc (NASDAQ:OMEX) have more than halved on the news that the Mexican government has denied the company’s application for an environmental license for dredging and phosphate sand extraction at the site of the company’s Don Diego project. The government has specifically denied the license because of concerns that the dredging operations could negatively impact sea turtles. Odyssey ‘is currently evaluating all options with their Mexican legal team in order to determine which of these avenues has the highest probability of ensuring an approval for the project’. Two funds in our database held $18,000 worth of Odyssey Marine Exploration Inc (NASDAQ:OMEX) shares at the end of December.
On the next page we examine why PHH Corporation, National-Oilwell Varco, and Under Armour are all losing ground today.