The markets are relatively flat today, despite bearish economic data coming out of Europe. The S&P 500 is down by 0.17% while the NASDAQ is 0.10% in the green. Among the stocks that aren’t so lucky this morning are Michael Kors Holdings Ltd (NYSE:KORS), ConforMIS Inc (NASDAQ:CFMS), SINA Corp (NASDAQ:SINA), NV5 Global Inc (NASDAQ:NVEE), and Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), all of which are suffering heavy losses. In this article, we’ll analyze why traders are selling these equities and also examine relevant hedge fund sentiment towards each of them.
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Michael Kors in the Red Due to Weak Sector Sentiment
Michael Kors Holdings Ltd (NYSE:KORS) is the victim of negative sector sentiment today after Nordstrom, Inc (NYSE:JWN)’s latest quarterly report showed that its comparable-store sales declined by 1.7% year-over-year. If demand for luxury apparel is soft, Michael Kors Holdings Ltd (NYSE:KORS)’s future earnings results might not be all that great either. Because of the negative data point, shares of Michael Kors are down by 5% in morning trading. 27 top hedge funds in our database, including David Einhorn‘s Greenlight Capital, owned Michael Kors shares at the end of December, out of the 786 elite funds that Insider Monkey tracks.
Poor Guidance Sinks ConforMIS
ConforMIS Inc (NASDAQ:CFMS) shares have more than halved this morning after the company offered weak guidance for the year. Although the company beat top and bottom-line expectations for the first quarter with a loss of $0.37 per share on revenue of $20.3 million versus estimates of a loss of $0.38 per share on sales of $19.23 million, ConforMIS Inc (NASDAQ:CFMS) revised downward its full-year revenue, to $76 million-to-$81 million from the previous guidance range of $84 million-to-$87 million. The company’s board of directors has also retained an executive search firm to seek out a replacement for current CEO Philipp Lang. Four top funds in our system owned a mere 0.70% of ConforMIS’ float at the end of 2015.
On the next page, we examine why shares of SINA Corp, NV5 Global, and Tetraphase Pharmaceuticals are also suffering this morning.