Why Are Investors Losing Confidence in These 5 Stocks Today?

Traders Selling on Mixed Alliance Data Earnings Report

Alliance Data Systems Corporation (NYSE:ADS) reported a mixed first quarter, with EPS of $3.84 on revenue of $1.68 billion, beating the top-line estimate by $10 million, but missing the bottom-line estimate by $0.01 per share. Adjusted EBITDA rose by 2% year-over-year to $440 million, while core EPS rose by 5% to $3.84. The company remains on-track to deliver $16.75 in core EPS and $7.1 billion in revenue for 2016. The market was evidently expecting better results however, as Alliance Data Systems Corporation (NYSE:ADS) shares are down by 7% today. The weaker Canadian economy could have an impact on the company’s results down the road, as it has a strong presence there, though its results don’t specify how much of its revenue is generated in the country. 25 elite funds owned 2.6% of Alliance Data Systems as of the end of December.

Dana Holding Misses and Traders Sell

Dana Holding Corporation (NYSE:DAN) missed both the top and bottom-line estimates with its first quarter results, as EPS of $0.34 and sales of $1.45 billion, checked in below the estimates of $0.42 per share and $1.52 billion respectively. The company’s sales retreated by 9.9% year-over-year due to the strong dollar and lower demand in the off-highway and commercial-vehicle segments, which fell by 15.1% and 23.1% year-over-year, respectively. Full year 2016 guidance calls for sales of $5.8 billion-to-$6.0 billion, and adjusted EPS of $1.65-to-$1.75. Free cash flow is expected to be $120 million-to-$140 million. 23 funds out of the 786 that we track in our database owned 12.5% of Dana Holding Corporation (NYSE:DAN)’s float at the end of 2015.

Fintech Darling LendingClub in the Red on Loan Changes

LendingClub Corp (NYSE:LC) is 5.6% lower today after the Wall Street Journal reported that the company is beginning to charge higher-risk customers more in interest due to greater-than-expected losses on its loan book. Investors fear the move will slow growth at the financial technology company. LendingClub also announced that Sameer Gulati will be the company’s new COO. Of the 786 elite funds we track, 18 of them owned $348.04 million worth of LendingClub Corp (NYSE:LC)’s shares or 8.30% of the float on December 31, up from 15 funds with $311.11 million in holdings on September 30.

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