After closing at record highs on Thursday, all three major U.S. stock indexes retreated on Friday trading, as weak US retail sales data hit the dollar, Treasury yields and the expectations for a rate hike.
Among the stocks on the move today are Concordia International Corp (NASDAQ:CXRX), Ruby Tuesday, Inc. (NYSE:RT), Cypress Semiconductor Corporation (NASDAQ:CY), Rio Tinto plc (ADR) (NYSE:RIO) and PBF Logistics LP (NYSE:PBFX). In this article we will take a look into the events surrounding these stocks, and into what the funds in our database think about them.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).
Concordia Tumbles After Guidance Cut
One of the largest decliners on Friday was Concordia International Corp (NASDAQ:CXRX), which had lost more than 30% by midday, hitting a new 52-week low. Before the market opened, the Canada-based pharmaceutical posted second-quarter EPS of $1.38, in-line with the Street’s consensus, while revenue of $231.71 million, increased by 208.1% year-over-year and beat the estimates by $1.95 million. However, good news ended there as the company’s management cut its guidance for the full year to the range of $859 million to $888 million, from the previous range of $1.02 billion to $1.06 billion, below the current consensus estimate of $936.99 million. The company also trimmed its adjusted EBITDA forecast to between $510 million and $540 million from the previous estimate of $610 million to $640 million. Moreover, the Board decided to suspend the $0.075 per share dividend. At the end of the first quarter, 10 funds among those we track were long Concordia International Corp (NASDAQ:CXRX). Their combined stakes accounted for roughly 4.2% of the company’s float.
Ruby Tuesday’s Terrible Friday
Also down following its earnings report was Ruby Tuesday, Inc. (NYSE:RT), which slipped by almost 13% on Friday. Fiscal fourth-quarter EPS of $0.10 came in $0.01 below estimates, while revenue of $279.32 million, down 5.9% year-over-year, missed the expectations by $5.68 million. In addition, the company said comparable store sales had declined by 3.7% year-over-year, and that it plans to close 95 underperforming stores. Ruby Tuesday, Inc. (NYSE:RT) saw 10 funds in our database holding shares at the end of the first quarter.