What is Going on With These 5 Falling Stocks?

PHH Corporation (NYSE:PHH) is off by 14% today after Merrill Lynch Home Loans announced its intention to move its origination of new applications for certain mortgage loan products in-house beginning April 25. Merrill Lynch Home Loans’ move could cost PHH 5% of its 2015 loan closing dollar volume on an annualized basis. Merrill Lynch Home Loans also intends to not renew its sub-servicing contract with PHH, meaning that 18% of PHH’s total servicing portfolio may have been lost. Due to the announcement, PHH has withdrawn its 2016 full year guidance, while management is considering its strategic options.

According to our data, hedge fund sentiment in PHH Corporation (NYSE:PHH) was stable in the fourth quarter. A total of 23 funds reported stakes worth $283.4 million (representing 29.20% of the float) as of the end of December, compared to 22 funds with $275.29 million in holdings at the end of September.

Despite the rising crude prices, National-Oilwell Varco, Inc. (NYSE:NOV) shares are almost 6% in the red after the company cut its quarterly dividend by 89% to $0.05 per share and the company’s management announced that first quarter revenue will be down by 20% quarter-over-quarter, from $2.7 billion in the fourth quarter. National-Oilwell Varco is cutting its dividend due to difficult industry conditions caused by weak energy prices. The dividend cut might be positive in the long run, however, as it will improve National-Oilwell Varco’s future net cash flow by $615 million per year. 26 elite hedge funds in our system owned slightly over 10% of National-Oilwell Varco, Inc. (NYSE:NOV)’s shares as of December 31.

Under Armour Inc (NYSE:UA) shares are off by 4.6% in afternoon trading after Morgan Stanley’s Jay Sole reiterated his ‘Sell’ rating on the stock. From his channel checks, Sole believes the company’s wholesale clothing sales dropped by 2% in the first quarter, while its women’s apparel sales declined by 7%. The share decline also comes a day after Under Armour spokesman Jordan Spieth suffered a disastrous loss at the Masters, losing by 3 shots after holding a 5-shot lead at the turn. Under Armour is set to release its first quarter financial results on April 21. 25 elite funds in our system owned Under Armour Inc (NYSE:UA) as of December 31, up by two from September 30.

Disclosure: None