What’s the Deal With These 4 Plummeting Stocks?

Boot Barn Holdings Inc (NYSE:BOOT) is also trading in the red today, down by more than 24% after the company announced mixed preliminary third-quarter results for fiscal year 2016. On the bright side, management estimates that net sales increased by 49% to approximately $194 million, driven in part by new and rebranded stores, but somewhat limited by a 2% tumble in consolidated same-store sales; the company had guided for low single-digit consolidated same-store sales growth. Finally, guidance for adjusted net income per diluted share is now expected to come in between $0.43 and $0.44, down from previous guidance of $0.47-to-$0.49.

Hedge funds also became less bullish on Boot Barn Holdings Inc (NYSE:BOOT) in the third quarter. The number of funds in our database with long positions in the company fell to 7 on September 30 from 11 on June 30. However, Chuck Royce’s Royce & Associates was pretty confident in the company, as it disclosed a 36% increase in its stake, to 812,656 shares worth almost $15 million during the third quarter.

Finally, we’ve got Sunedison Inc (NYSE:SUNE), which has lost about 16% today, after Axiom Capital Management’s Gordon Johnson questioned the company’s recent debt restructuring. On Benzinga’s PreMarket Prep show, the expert explained that, “SunEdison was very aggressive in the way they were bidding for projects. If they’re unable to sell those projects, I don’t know how much longer the equity can last.”

Sunedison Inc (NYSE:SUNE) is the worst-performing clean energy company out there right now, and it seems like many hedge funds saw it coming. Over the third quarter of 2015, the number of hedge funds in our database with long stakes in the company fell by 21.5% to 73. Even the largest shareholder in our system, David Einhorn’s Greenlight Capital, decided to reduce its stake by 26% over the period, to 18.6 million shares. It should be noted, however, that the funds that we track currently own more than 46% of the company’s total outstanding stock.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned in this article.