What’s the Deal With These 5 Tanking Stocks?

Traders Sell Barnes Due to Earnings

Although Barnes Group Inc. (NYSE:B) reported in-line earnings of $0.54 for the first quarter, the company missed sales estimates by $9.95 million with revenue of $288.33 million, which has led to its shares dipping by 10.8% today. Revenue missed estimates because organic sales declined by 7% year-over-year due to weaker demand and a stronger dollar. Adjusted operating margin fell by 20 basis points to 14.7%. The company’s 2016 adjusted diluted EPS guidance was unchanged, however, at $2.43-to-$2.58. Management expects 2016 organic revenue growth of 0%-to-2%, with total revenue growth of 2%-to-4% after an adjustment of 1% for unfavorable foreign exchange and a positive 3% adjustment from acquisition revenue. Barnes Group Inc. (NYSE:B) was in the portfolios of ten hedge funds in our system at the end of December.

Ironwood Pharmaceuticals Drops on Drug Purchase

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is 9.4% lower today after the company entered into a U.S licensing agreement with AstraZeneca plc (ADR) (NYSE:AZN) for the rights to the FDA-approved lesinurad, which is expected to commercially launch in the second half of this year, for the treatment of hyperuricemia associated with uncontrolled gout. Traders could be selling because of the purchase price. For the exclusive U.S rights to all products containing lesinurad, Ironwood Pharmaceuticals will pay $100 million up front and tiered single-digit royalties and other milestones amounting to up to $165 million. Ironwood`s management expects the deal to be accretive by 2019, with anticipated annual sales to exceed $300 million at their peak. The number of top funds that held shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) rose by three quarter-over-quarter to 20 at the end of December.

Technical Selling Detected at JD.com

Technical traders are playing a big part in JD.Com Inc(ADR) (NASDAQ:JD)‘s action today after the stock recently sliced through several key moving averages. Given that peer Alibaba Group Holding Ltd (NYSE:BABA) hasn’t fallen by much today, today’s 7.5% drop for JD.Com Inc could prove to be a buying opportunity if the company’s earnings release on May 9 doesn’t disappoint and there is no additional non-public bad news that comes out. Of the 786 active funds that we tracked as of December 31, 78 of them owned $10.84 billion of JD.Com Inc(ADR) (NASDAQ:JD)’s shares, up from 71 funds owning $9.1 billion in shares on September 30.

Disclosure: None